Multidimensional Inequality in Uzbekistan

Abstract

This paper presents the first application of a new methodology for estimating multidimensional inequality. The setting is Uzbekistan’s rapidly changing economy; the data comprise the latest rounds of the Uzbekistan Household Budget Survey, 2021–2024. We construct a multidimensional inequality index (MDI) across three dimensions that reflect national priorities. Results show that national MDI levels have risen over time, driven primarily by changes in the associations among dimensions rather than by increases within dimensions. MDI levels are evaluated across 14 regions; a decomposition analysis shows that within-region inequality is the dominant contributor to the national MDI. Patterns of multidimensional inequality differ markedly from those observed with income inequality alone. Sensitivity analyses address the robustness of the findings, while a policy simulation illustrates how targeted interventions in specific dimensions can reduce multidimensional inequality. Overall, the results emphasize how focusing on income alone can miss important disparities arising from nonmonetary aspects of wellbeing. The data underlying this article cannot be shared publicly due to the privacy law of the Republic of Uzbekistan.