Ethnic conflict and economic disparity: Serbians and Albanians in Kosovo

Sumon Bhaumik, Ira N. Gang, Myeong-Su Yun

Research output: Contribution to journalArticlepeer-review


Using the Living Standards Measurement Study (LSMS) household survey from post-conflict Kosovo, we investigate the comparative economic well-being of Serbs and Albanians. An Oaxaca decomposition shows Serb households are both better endowed with income generating characteristics, such as education, and receive higher returns to these characteristics than Albanian households. Despite these advantages, Serb households have lower living standards, on average, than Albanian households. Most of the difference in living standards between Serb and Albanian households is due to unobserved non-economic factors. This result has serious implications for the political economy of policymaking in post-conflict Kosovo.
Original languageEnglish
Pages (from-to)754-773
Number of pages20
JournalJournal of Comparative Economics
Issue number4
Publication statusPublished - Dec 2006


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