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The purpose of this paper is to analyze the determinants of scholastic performance using an efficiency analysis perspective.

The authors apply data envelopment analysis (DEA) at the pupil level using the 2009 PISA survey in Azerbaijan. Before applying DEA with multiple outputs, this paper integrates the maximum amount of available information on inputs via the use of correspondence analysis.

The results show that scholastic efficiency depends positively on the externalities due to the resources of the school and to a peer effect. The analysis of the determinants of these externalities shows how they influence scholastic performance and has some policy implications.

Education policies should promote the resource externality, because its effect is more homogeneous among pupils. The mechanisms generating school externalities should be taken into consideration by educational authorities, when allocating resources to school and should give some guidelines about how to use these resources and how to manage a school in order to promote peer effects externalities.

The authors distinguish various sources of efficiency: that of the pupil and that due to school externalities operating via resources and peer effects. The authors relate the efficiency due to school externalities to individual, family and school characteristics.

This chapter examines the impoverishment process in three South Caucasian states: Armenia, Azerbaijan and Georgia. It uses the concept of ‘order of curtailment’ of consumption expenditures to detect the order of curtailment of expenditures in the Caucasus region. It then suggests computing poverty rates on the basis of a threshold corresponding to the curtailment of a certain number of consumption expenditures categories and compares the poverty rates obtained with those derived from more traditional approaches to the unidimensional measurement of poverty. The empirical illustrations are based on the Caucasus Barometer surveys of 2009 and 2013.

Income polarization is a relatively new concept introduced in the literature of the measurement of income inequality. It has essential properties that may be used to measure relative deprivation and it adds another dimension to the measurement of income inequality concerned mainly with the middle income class (Esteban and Ray, 1994). No study, however, seems to have tried to decompose by population subgroups any of the polarization indices that have appeared in the literature. This study introduces a methodology that decomposes the polarization index recently suggested by Deutsch et al. (2007) by population subgroups. This polarization index is related to the Gini index and its components so that previous results on the decomposition of the Gini index may be applied. Two main cases are examined, that of nonoverlapping groups and overlapping groups. The paper also includes an empirical analysis based on Israeli data for the period 1990–2004, which covers the case of nonoverlapping (income) groups as well as that of overlapping groups, the latter being either Jews of Western and Eastern origin or Jews and Non-Jews. The empirical analysis shows a decrease in polarization over the period 1990–2002 and an increase in polarization during the years 2002–2004. Using the Shapley methodology we analyze the contribution of the different factors to the trend in polarization observed over time.

Looking at the Jewish population in Israel in 1995 this paper compares three multidimensional approaches to poverty measurement and checks to what extent they identify the same households as poor. Logit regressions are then estimated to understand which variables have an impact on poverty. Finally, the so-called Shapley decomposition is introduced to estimate the exact marginal impact of these determinants of poverty.

Of particular interest to this study was the combined effect of the generation to which the head of the household belongs and his/her place of birth. It turns out that the ethnic origin has a significant impact on multidimensional poverty in Israel insofar as being a head of household born in Asia or Africa, whatever the generation to which one belongs, increases, ceteris paribus, the probability of being poor.

This paper proposes a generalized approach to the issue of decomposing inequality by population subgroups. This generalization uses the concept of Shapley value decomposition and takes into account the fact that either the between or the within groups inequality may be considered as residual terms, that the population size of the subgroups may have an impact on inequality and finally that there are various ways of ranking the individuals when defining the Gini index of inequality. The paper presents an empirical illustration based on the 1998 Israeli Income Survey where the subgroups distinguished are the male- and female-headed households.

This paper has two goals. First it determines the respective impacts of variations in the tax rates and in the distribution of pre-tax incomes on changes in tax progressivity in the United Kingdom during the period 1960–2001. Second it checks whether macroeconomic variables or the political cycle influenced the degree of tax progressivity. The results of the empirical analysis show that the significant decrease in tax progressivity observed between 1960 and 1982 was essentially the result of a variation in the distribution of pre-tax incomes. During the later period (1982–2001) the data indicate that there was no significant change in overall progressivity and in the components of its change. The second part of this study indicates that in the long run both inflation and unemployment negatively affect tax progressivity. The impact of the political cycle on tax progressivity is not clear and the results depend on the tax progressivity index that is used. It is interesting to note that in the cases where a political effect is found it indicates that under the Labour party, tax progressivity increased, for a given level of inflation and unemployment. The econometric analysis also shows that in the short run, only unemployment has a significant effect on tax progressivity.

Purpose – The aim of this paper is to analyze the changes that took place in occupational segregation by gender, nationality, and age in Switzerland during the period 1970–2000.

Methodology – The paper starts by using correspondence analysis to detect changes in occupational segregation by gender and nationality. It then generalizes a decomposition procedure originally proposed by Karmel and McLachlan by combining their approach with what is now known as the Shapley decomposition. Such a generalization offers a clear breakdown of the variation over time in occupational segregation into a component measuring changes in net segregation and another one corresponding to changes in the margins, the latter itself including variations in the occupational structure and in the shares of the subpopulations (e.g., the genders) in the labor force.

Findings – Between 1970 and 2000 there was a slight increase in gross segregation by gender but a decrease in net segregation. The change in gross segregation is because the change in the margins more than compensated that in the internal structure. But even the change in the margins is the consequence of opposite forces since variations in the occupational structure would have per se led to a decrease in gross segregation.

Originality – The results of the empirical illustration based on Swiss data for 1970 and 2000 prove the usefulness of the approach. They stress in particular that in several instances, variations in gross and net segregation worked in opposite directions.

A recent trend in the study of poverty is to consider a relative poverty line, one that is responsive to the nature of the income distribution. We develop an axiomatic approach to the determination of an amalgam poverty line. Given a reference income (e.g., the mean or the median), the amalgam poverty line becomes a weighted average of the absolute poverty line and the reference income, where the weights depend on the policy maker’s preferences for aggregating the two components. The paper ends with an empirical illustration comparing urban and rural areas in the People’s Republic of China and India.