Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Quantile Regression and Oaxaca-Blinder Decomposition in Analyzing Household Income Inequality
Musiimenta Nancy, Kobusingye Prudence
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 4, No. 3 |
| Published | 31 March 2025 |
| ISSN | 3006-4384 |
Abstract
This study examined household income inequality in Uganda using advanced econometric methods, including Quantile Regression, Oaxaca-Blinder Decomposition, and Generalized Method of Moments (GMM), to analyze the effects of socio-economic factors such as education, work experience, gender, and sectoral employment on income distribution. The research aimed to provide a more comprehensive understanding of income inequality by exploring its variation across different income quantiles. The findings revealed that education and work experience significantly influenced household income, with stronger effects at higher income quantiles. Gender disparities in income were consistently observed, with women earning less than their male counterparts, particularly at higher income levels, which highlighted the persistent gender wage gap. Additionally, individuals working in agriculture faced lower income compared to those in other sectors, contributing to the rural-urban income divide. The Oaxaca-Blinder decomposition showed that differences in education and experience explained a portion of the wage gap, but an unexplained portion remained, suggesting the presence of unobservable factors such as discrimination and regional disparities. The use of GMM further validated these results by addressing potential endogeneity issues. Based on these findings, the study recommended targeted policy interventions aimed at promoting gender equality in education and employment, enhancing access to education and skills development, and fostering rural economic development through sectoral diversification. The study concluded that addressing these structural factors would be crucial in reducing income inequality and promoting more equitable economic growth in Uganda. Key Words: Quantile Regression and Oaxaca-Blinder Decomposition Background of the Study Income inequality remains one of the most pressing economic and social challenges globally, influencing
Cite This Article
Musiimenta Nancy & Kobusingye Prudence (2025). Quantile Regression and Oaxaca-Blinder Decomposition in Analyzing Household Income Inequality. Metropolitan Journal of Academic Multidisciplinary Research, 4(3). https://journals.miu.ac.ug/pages/article.php?article_id=794
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