Living Standards Measurements Study - Serbia 2002 - 2007

Graph 1.4. Growth incidence curve (annual), 2002-2007
Total (years 2002 and 2007)
Urban
Annual growth rate %
1 2 3 4 5 6
Growth-incidence
Growth in mean
95% confidence bounds
Mean growth rate
Annual growth rate %
1 2 3 4 5 6
1 10 20 30 40 50 60 70 80 90 100
Rural
Expenditure percentiles
1 10 20 30 40 50 60 70 80 90 100
Expenditure percentiles
Annual growth rate %
1 2 3 4 5 6
1 10 20 30 40 50 60 70 80 90 100
Expenditure percentiles
However, further analysis of main causes of
rural poverty growth over 2002-2007 is required.
In urban areas, an above-average consumption
growth was recorded among the poorest and the
richest, whereas the middle-class has seen a belowaverage
consumption growth. It indicates a less
favourable position of the middle-class in this fiveyear
period, which should otherwise be the leader of
economic development.
1.5. Inequality
Inequality of consumption is analyzed in this
part, as well as changes in consumption distribution
which could have arisen as a result of unequal
growth of consumption among different layers of
population and different regions. The features of the
consumption growth in different segments of
distribution, in addition to Graph 4 in the previous
part are presented in Table 5. The table shows the
ratio of the chosen percentiles of consumption
distribution (p10, p25, p50, p75, p90) as well as the
Gini coefficient for total, urban and rural
population, so that the features and the change in
Poverty profile in Serbia
inequality in the 2002-2007 period may be more
elaborately analyzed.
Inequality has slightly dropped in the lower
half of consumption distribution (inequality
measured by p50 and p25 ratio), while it slightly
increased in the upper half of distribution (p75/p50).
The Gini coefficient remained almost unchanged
(29.3 in 2002 and 29.7 in 2007).
Inequality in the upper half of the distribution
is somewhat lower than the inequality in the lower
half of consumption distribution in 2002, while it
was quite the opposite in 2007. Inequality in urban
areas measured by the Gini coefficient was slightly
lower compared to rural areas in 2002, whereas five
years later the inequality in urban areas was higher
compared to rural areas. It is a consequence of a
moderate growth of inequality in urban areas and a
moderate decline of inequality in rural areas
between 2002 and 2007. A slight drop of inequality
in rural areas was recorded in almost all segments of
consumption distribution, while a small decline of
inequality in urban areas was seen only in the lower
part of consumption distribution.
15