This paper utilizes regression based inequality decomposition methodology developed by Field (2003) to determine factors driving income inequality at household level in Botswana. Using the Household Income and Expenditure Survey of 2002/03 an income generating function is estimated using OLS. This provides an efficient and flexible way to quantify the roles of household variables like education and age on inequality in a multivariate context. Results of the inequality decomposition indicate that secondary school education, training, Value Added Tax, number of children and number of working adults in the household contribute significantly to inequality in Botswana. On the other hand, variables like primary education, age and owning between 1 and 10 head of livestock equalises income inequality.
|Name||Economics Discussion Papers|