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Entrepreneurship and income inequality in southern Ethiopia

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  • Ayal Kimhi

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Abstract

This paper uses inequality decomposition techniques in order to analyze the consequences of entrepreneurial activities to household income inequality in Southern Ethiopia. A uniform increase in entrepreneurial income reduces per capita household income inequality. This implies that encouraging rural entrepreneurship may be favorable for both income growth and income distribution. Such policies could be particularly successful if directed at the low-income, low-wealth, and relatively uneducated segments of the society.

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File URL: http://hdl.handle.net/10.1007/s11187-009-9196-4
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 34 (2010)
Issue (Month): 1 (January)
Pages: 81-91

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Handle: RePEc:kap:sbusec:v:34:y:2010:i:1:p:81-91

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Africa; Entrepreneurship; Ethiopia; Income inequality; Redistribution; L26; M13; O15; O55;

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Cited by:
  1. Naude, Wim, 2009. "Entrepreneurship is not a Binding Constraint on Growth and Development in the Poorest Countries," Working Paper Series Research Paper No. 2009-4, World Institute for Development Economic Research (UNU-WIDER).
  2. Kimhi, Ayal, 2011. "Can Female Non-Farm Labor Income Reduce Income Inequality? Evidence from Rural Southern Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114756, European Association of Agricultural Economists.

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