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Effects of income inequality on COVID-19 in Africa: Accounting for literacy and informal sector

Author

Listed:
  • Sévérin TAMWO

    (University of Yaoundé-2, Cameroon)

  • Etayibtalnam KOUDJOM

    (United Nations Economic Commission for Africa (UNECA), Sub Regional Office for North Africa, Rabat, Morocco)

  • Aurelien KAMDEM YEYOUOMO

    (Centre for Finance and Development-Geneva Graduate Institute, Switzerland)

Abstract

The empirical literature has explored little regarding the transmission channels in the study of the relationship between income inequality and the spread of COVID-19. The aim of this article is to fill this gap by assessing the direct and indirect effects of income inequality on the spread of the pandemic using a sample of 43 African countries during the period from 2020 to 2022. Two indicators of COVID-19 are utilized: the total number of cases and the severity of the disease and explanatory variables, such as urban population and population density, play a significant role. Two transmission channels are particularly examined: the size of the informal sector and literacy rates. The results, derived from a fixed-effects regression model or estimated using generalized least squares, indicate that income inequality has a significant effect on the spread of COVID-19. However, it is shown that these results underestimate the effects of inequality when considering the indirect effects due to the weight of the informal sector and illiteracy.

Suggested Citation

  • Sévérin TAMWO & Etayibtalnam KOUDJOM & Aurelien KAMDEM YEYOUOMO, 2024. "Effects of income inequality on COVID-19 in Africa: Accounting for literacy and informal sector," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 60, pages 91-111.
    • Handle: RePEc:tou:journl:v:60:y:2024:p:91-111
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I10 - Health, Education, and Welfare - - Health - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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