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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

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.

Suggested Citation

  • N. S. Ssewanyana & A J. Okidi & D. Angemi & V. Barungi, 2004. "Understanding the determinants of income inequality in Uganda," CSAE Working Paper Series 2004-29, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2004-29
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    1. Adams, Richard H. Jr. & He, Jane J., 1995. "Sources of income inequality and poverty in rural Pakistan:," Research reports 102, International Food Policy Research Institute (IFPRI).
    2. 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 467-491, April.
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    Cited by:

    1. 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.
    2. World Bank, 2004. "The Republic of Uganda : Country Integrated Fiduciary Assessment 2004, Volume 1. Main Report," World Bank Publications - Reports 15681, The World Bank Group.
    3. Channing Arndt & Sam Jones & Vincenzo Salvucci, 2015. "When do relative prices matter for measuring income inequality? The case of food prices in Mozambique," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 449-464, September.
    4. UNDP Regional Bureau for Africa & Haroon Bhorat & Karmen Naidoo, "undated". "Drivers of Inequality in the Context of the Growth-Poverty-Inequality Nexus in Africa: Overview of key issues," UNDP Africa Policy Notes 2017-04, United Nations Development Programme, Regional Bureau for Africa.
    5. 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.
    6. Anirudh Krishna & Daniel Lumonya & Milissa Markiewicz & Firminus Mugumya & Agatha Kafuko & Jonah Wegoye, 2006. "Escaping poverty and becoming poor in 36 villages of Central and Western Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 346-370.
    7. Bhorat, Haroon & Naidoo, Karmen, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: Drivers of Inequality in the Context of the Growth-Poverty-Inequality Nexus in Africa: An overview of key iss," UNDP Africa Reports 267643, United Nations Development Programme (UNDP).
    8. 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).
    9. repec:rac:ecchap:2017-04 is not listed on IDEAS
    10. Paolo Brunori & Flaviana Palmisano & Vito Peragine, 2015. "Inequality of opportunity during the great recession in Uganda," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    11. Haruna Sekabira & Shamim Nalunga, 2020. "Farm Production Diversity: Is It Important for Dietary Diversity? Panel Data Evidence from Uganda," Sustainability, MDPI, vol. 12(3), pages 1-21, January.
    12. 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.
    13. 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.
    14. Dwiputri, Inayati Nuraini & Arsyad, Lincolin & Pradiptyo, Rimawan, 2018. "The corruption-income inequality trap: A study of Asian countries," Economics Discussion Papers 2018-81, Kiel Institute for the World Economy (IfW Kiel).
    15. Paolo Brunori & Flaviana Palmisano & Vitorocco Peragine, 2015. "Inequality of Opportunity During the Great Recession in Uganda," WIDER Working Paper Series wp-2015-039, World Institute for Development Economic Research (UNU-WIDER).
    16. Marinko Škare & Saša Stjepanovic, 2014. "Income Distribution Determinants and Inequality – International Comparison," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(37), pages 980-980, August.

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    Keywords

    Uganda; Inequality; Poverty;
    All these keywords.

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