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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by PEP-PMMA in its series Working Papers PMMA with number 2006-20.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: Pavillon J.A. De Seve, Québec, Québec, G1V 0A6
Phone: 1-418-656-2131, ext. 2697
Web page: http://www.pep-net.org
More information through EDIRC
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-AFR-2007-01-02 (Africa)
- NEP-AGR-2007-01-02 (Agricultural Economics)
- NEP-ALL-2007-01-02 (All new papers)
- NEP-DEV-2007-01-02 (Development)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Clarke, George & Xu, Lixin Colin & Zou, Heng-fu, 2003.
"Finance and income inequality : test of alternative theories,"
Policy Research Working Paper Series
2984, The World Bank.
- George Clarke & Lixin Colin Xu & Heng-fu Zou, 2013. "Finance and Income Inequality: Test of Alternative Theories," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 493-510, November.
- George Clarke & Lixin Colin Xu & Heng-fu Zou, 2003. "Finance and Income Inequality: Test of Alternative Theories," CEMA Working Papers 493, China Economics and Management Academy, Central University of Finance and Economics.
- Kanbur, Ravi & Lustig, Nora, 1999. "Why is Inequality Back on the Agenda?," Working Papers 127690, Cornell University, Department of Applied Economics and Management.
- Rosenzweig, Mark R & Schultz, T Paul, 1989. "Schooling, Information and Nonmarket Productivity: Contraceptive Use and Its Effectiveness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 457-77, May.
- Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
- Ayinde, Opeyemi Eyitayo & Muchie, Mammo & Babatunde, Raphael O. & Adewumi, Matthew Olaniyi & Ayinde, Kayode & Ibitoye, Olalekan, 2012. "Analysis Of Income Inequality In Nigerian Agricultural Economy: A Case Study Of Ekiti State," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126228, International Association of Agricultural Economists.
- Awoniyi, Olabisi A. & Falusi, Abiodun O. & Adeoti, A.I., 2009. "Decomposition Analysis of Political Inequality among Rural Households in Nigeria," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 18.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).
If references are entirely missing, you can add them using this form.