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Entrepreneurship and income inequality in southern Ethiopia

  • Ayal Kimhi


This paper uses inequality decomposition techniques in order to analyze 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 favorable 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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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 34 (2010)
Issue (Month): 1 (January)
Pages: 81-91

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Handle: RePEc:kap:sbusec:v:34:y:2010:i:1:p:81-91
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