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Investigating Growing Inequality in Mozambique

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  • Carlos Gradín
  • Finn Tarp

Abstract

In this paper, we investigate the long‐term trend of consumption inequality in Mozambique. We show that an imbalanced growth path disproportionally benefited the better‐off and caused increasing inequality, especially in more recent years, curbing the necessary reduction in poverty. Using a regression decomposition technique, our results suggest that this trend was strongly associated with the higher attained education of household heads and with the changes in the structure of the economy (with less workers in the public and subsistence sectors). The trend was, however, mitigated by the tendency for the higher level of attained education and the smaller public sector to become associated with less inequality over time. These results point to the importance of accelerating the expansion of education and improving the productivity of the large subsistence sector to lower inequality in line with the sustainable development goals.

Suggested Citation

  • Carlos Gradín & Finn Tarp, 2019. "Investigating Growing Inequality in Mozambique," South African Journal of Economics, Economic Society of South Africa, vol. 87(2), pages 110-138, June.
    • Handle: RePEc:bla:sajeco:v:87:y:2019:i:2:p:110-138
    DOI: 10.1111/saje.12215
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    Cited by:

    1. Matt Andrews, 2022. "Getting Real about Unknowns in Complex Policy Work," CID Working Papers 406, Center for International Development at Harvard University.
    2. Moisés Siúta & Felix Mambo & Ivan Manhique & Muna Shifa & Bento Munkuka, 2024. "Social inequality in Mozambique," Working Paper 4c931ac0-7a36-4df4-a007-3, Agence française de développement.
    3. Baumert, Sophia & Fisher, Janet & Ryan, Casey & Woollen, Emily & Vollmer, Frank & Artur, Luis & Zorrilla-Miras, Pedro & Mahamane, Mansour, 2019. "Forgone opportunities of large-scale agricultural investment: A comparison of three models of soya production in Central Mozambique," World Development Perspectives, Elsevier, vol. 16(C).
    4. Carlos Gradín & Félix Mambo & Yonesse Paris & Ricardo Santos, 2020. "Unequal expectations: Gender inequality in salary expectations of university students," WIDER Working Paper Series wp-2020-78, World Institute for Development Economic Research (UNU-WIDER).
    5. Carlos Gradín, 2020. "Quantifying the contribution of a subpopulation to inequality an application to Mozambique," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 391-419, September.
    6. Paulo Ivo Garrido, 2020. "Health, development, and institutional factors: The Mozambique case," WIDER Working Paper Series wp-2020-131, World Institute for Development Economic Research (UNU-WIDER).
    7. Atsushi Iimi, 2022. "Agriculture Production and Transport Connectivity: Evidence from Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 58(12), pages 2483-2502, December.
    8. Vincenzo Salvucci & Finn Tarp, 2024. "Assessing the Impact of Covid-19 in Mozambique in 2020," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 803-840, August.
    9. World Bank, 2021. "Investing in Mozambique's Connectivity," World Bank Publications - Reports 39868, The World Bank Group.

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