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Impact of Unemployment Rate on Income Inequality in Kenya

Author

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  • Ambetsa, Ashyline Sharon
  • Rutto, Reuben
  • Ngala, Consolata

Abstract

Purpose: Impact of unemployment rate on income inequality in KenyaDesign/Methodology/Approach: Through a longitudinal approach, secondary time series data from the World Bank, Transparency International, UNDP and SWIID, and by applying the Augmented Dickey Fuller, Johansen cointegration and vector error correction model.Findings: This study found that the mean inequality index is 0.461 while unemployment has a mean of 12.75. Unemployment was found to have a direct significant long run impact on inequality of -2.2869 (p < 0.001) in the first cointegrating vector (CI1).Implications/Originality/Value: It is thus important that robustness checks are done before drawing conclusions. The study concludes that there exists long run relationship between inequality and unemployment, the latter variable has a dominant role, and there exist long run relationships between inequality and unemployment

Suggested Citation

  • Ambetsa, Ashyline Sharon & Rutto, Reuben & Ngala, Consolata, 2026. "Impact of Unemployment Rate on Income Inequality in Kenya," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 12(2), pages 277-288, June.
    • Handle: RePEc:src:jafeec:v:12:y:2026:i:2:p:277-288
    DOI: http://doi.org/10.26710/jafee.v12i2.3801
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