Decomposing Inequality in Greece: Results and Policy Implications

This paper investigates the extent to which certain social characteristics and personal attributes could help explain income inequality in Greece. This analysis is quite revealing for understanding and explaining income idfferences among certain population subgroups with apparent policy implications. The degree to which overall inequality is attributable to inequality between these sub groups or to inequality within them is investigated, employing a decomposition analysis by population subgroups. The results show that there are significant differences in the average household income, in its structure and in inequality between the subgroups. However, despite these differences, in all groups used the between-group inequality accounts only for a small sigment of the overall inequality.