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Understanding the determinants of income inequality in Uganda

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  • N. S. Ssewanyana
  • A J. Okidi
  • D. Angemi
  • V. Barungi
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    Abstract

    This paper aims to deepen our understanding of the determinants of income inequality in Uganda. Over the past 10 years, Uganda experienced gradual and sustained economic growth and poverty reduction. The benefits of growth, however, are not being distributed equally. The major contributions of this paper include: (i) Use of income data to decompose the contribution of each income source to overall inequality; (ii) Decomposition of consumption expenditure into subgroups in order to examine the contribution of each subgroup to overall inequality using their between- and within-subgroup components, both spatially and over time; (iii) Regression-based inequality decomposition to identify and quantify the relative contribution of household and community level factors in determining inequality. The evidence supports the hypothesis that higher income groups, possessing more income generating assets (productive assets, human assets, or both), are in a better position to benefit from increased national income.

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    File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/2004-29text.pdf
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    Bibliographic Info

    Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2004-29.

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    Date of creation: 2004
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    Handle: RePEc:csa:wpaper:2004-29

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    Keywords: Uganda; Inequality; Poverty;

    References

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    1. Adams, Richard H, Jr, 1995. "Agricultural Income, Cash Crops, and Inequality in Rural Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 43(3), pages 467-91, April.
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    Cited by:
    1. Houssou, Nazaire & Zeller, Manfred & Alcaraz V., Gabriela & Johannsen, Julia & Schwarze, Stefan, 2010. "How Best to Target the Poor? An operational targeting of the poor using indicator-based proxy means tests," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95780, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
    2. Stephan Klasen & David Lawson, 2007. "The Impact of Population Growth on Economic Growth and Poverty Reduction in Uganda," Departmental Discussion Papers 133, University of Goettingen, Department of Economics, revised 25 May 2007.
    3. Charles Augustine Abuka & Michael Atingi-Ego & Jacob Opolot & Marian Mraz, 2007. "The impact of OECD Agricultural trade liberalization on poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp208, IIIS.
    4. Stephan Klasen, 2005. "Population Growth, (Per Capita) Economic Growth, and Poverty Reduction in Uganda: Theory and Evidence," Departmental Discussion Papers 125, University of Goettingen, Department of Economics.
    5. Charles Augustine Abuka & Michael Atingi-Ego & Jacob Opolot & Patrick Okello, 2007. "Determinants of poverty vulnerability in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp203, IIIS.

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