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Entrepreneurship and Income Inequality in Southern Ethiopia

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  • Kimhi, Ayal

Abstract

This paper uses inequality decomposition techniques in order to analyse 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 favourable 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://www.wider.unu.edu/stc/repec/pdfs/rp2009/RP2009-05.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2009/05.

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Length: 15
Date of creation: 2009
Date of revision:
Handle: RePEc:unu:wpaper:rp2009-05

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Keywords: entrepreneurship; income inequality; redistribution; Ethiopia; Africa;

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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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