How Serious Regional Economic Inequality in Jordan? Evidence from Two National Household Surveys

Abstract

The objective of this study is to measure and explain the extent of regional economic inequalities in Jordan. To do so, this study uses the raw data of two national household surveys on expenditure and income that covers 5,971 and 11,153 households in 1997 and 2002, respectively. As a check on the empirical results, the study applies four measures of inequality: The Gini index, Atkinson's index, the 90/10 ratios, and the standard deviation of the natural logarithm. The study concludes that economic inequality has increased over the five years of growth period following 1997. The overall increase is estimated at about 17% indicating a shift in the function of income distribution so that income may have become more unequal. In its evaluation of income distribution, the study has reached the conclusion that regional economic inequality in Jordan is serious and there is a need for a more space-balanced approach.