Deciphering Regional Consumption-Gap in Tunisia: A Micro-Econometric Analysis Based Desegregated well-being Data

Abstract

This paper uses household desegregated expenditure data to assess the differential impact of
consumption expenditure and its components across different expenditures quintiles, between urban and rural
regions in Tunisia. It also provides assessment of poverty at east-west level. Using a new approach of
semiparametric censored regression model, this paper offers another analysis of the sensitivity of some
indicators such as health, food and education, with regional disparity in Tunisia. Socio-demographic
characteristics and economic factors, such as educational level, employment sector, and returns to those
characteristics (i.e. quality of hospital equipment, level and quality of educational system etc.) were found to
be important determinants of urban-rural household welfare disparities. Meanwhile, the paper proposed some
policies recommendation based on micro/macro mechanisms in order to reduce regional inequality in Tunisia.