Measurement and Sources of Income Inequality among Rural and Urban Households in Nigeria
AbstractIncome inequality and poverty are closely related. This study decomposed income inequality in Nigeria using the Gini-decomposition, regression-based and Shapley approaches. Results show that in 2004, income inequality is higher in rural areas than in urban areas. The study also noted that employment income increases inequality while agricultural income decreases inequality. Factors suchs as urbanization, residence in the southwest zone, household size, the house head's formal education, number of time suffered from illness, engagement in a paid job, involvement in a non-farm business, formal credit and informal credit contributed to the increased income inequality. Between 1998 and 2004, income redistribution and income growth increased poverty. The study recommended that welfare enhancing programs that will benefit urban/rural poor should be identified, while better economic opportunities should be created for those in rural areas.
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Bibliographic InfoPaper provided by PEP-PMMA in its series Working Papers PMMA with number 2006-20.
Date of creation: 2006
Date of revision:
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Income inequality; poverty; decomposition; economic opportunities; Nigeria;
Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-01-02 (Agricultural Economics)
- NEP-ALL-2007-01-02 (All new papers)
- NEP-DEV-2007-01-02 (Development)
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