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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 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.

Suggested Citation

  • Kimhi, Ayal, 2009. "Entrepreneurship and Income Inequality in Southern Ethiopia," Discussion Papers 47505, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:47505
    DOI: 10.22004/ag.econ.47505
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    Cited by:

    1. Andrew E. Hansen-Addy & Davide M. Parrilli & Ishmael Tingbani, 2024. "The impact of trade facilitation on African SMEs’ performance," Small Business Economics, Springer, vol. 62(1), pages 105-131, January.
    2. Saridakis, George & Georgellis, Yannis & Muñoz Torres, Rebeca I. & Mohammed, Anne-Marie & Blackburn, Robert, 2021. "From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?," Journal of Business Research, Elsevier, vol. 136(C), pages 567-579.
    3. Guangshun Xu & Lin Feng & Wenzheng Wang & Qiaohui Liang, 2024. "Digital Financial Literacy and Rural Income Inequality," SAGE Open, , vol. 14(3), pages 21582440241, September.
    4. Ishola, James Aransiola & Ojelade, Mathew Ojeleke & Akinmusira, Olutoyosi Oluseye & Ajayi, Johnson Kolawole & Amusat, Rasaq Bamidele, 2024. "Drivers of Women Entrepreneurship in the Oke-Ogun Region, Oyo State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 1420-1429, August.
    5. Hao, Yunping & Zhang, Bing, 2024. "The impact of digital financial usage on resident’s income inequality in China: An empirical analysis based on CHFS data," Journal of Asian Economics, Elsevier, vol. 91(C).
    6. Umesh Shrivastava & Amit Kumar Dwivedi, 2021. "Manifestations of rural entrepreneurship: the journey so far and future pathways," Management Review Quarterly, Springer, vol. 71(4), pages 753-781, October.
    7. Kimhi, Ayal, "undated". "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.
    8. Jolanda Hessels & Wim Naudé, 2019. "The Intersection Of The Fields Of Entrepreneurship And Development Economics: A Review Towards A New View," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 389-403, April.
    9. Wang, Yi & Li, Biao & Niu, Xiaoyan & Li, Baoqi, 2024. "Return-to-hometown entrepreneurship and employment of low-income households: Evidence from national returned entrepreneurial enterprise data of China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1714-1729.
    10. Zhang, Cheng & Zhu, Yuyao & Zhang, Limin, 2024. "Effect of digital inclusive finance on common prosperity and the underlying mechanisms," International Review of Financial Analysis, Elsevier, vol. 91(C).
    11. Kimhi, Ayal & Arayama, Yuko & Kim, Jong-Moo, 2014. "Identifying determinants of income inequality in the presence of multiple income sources: The case of Korean farm households," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182842, European Association of Agricultural Economists.
    12. Bruton, Garry & Sutter, Christopher & Lenz, Anna-Katharina, 2021. "Economic inequality – Is entrepreneurship the cause or the solution? A review and research agenda for emerging economies," Journal of Business Venturing, Elsevier, vol. 36(3).
    13. Antonio Lecuna, 2014. "High income inequality as a structural factor in entrepreneurial activity," Past Working Papers xx, Universidad del Desarrollo, School of Business and Economics, revised Dec 2014.
    14. Bhuiyan, Muhammad Faress & Ivlevs, Artjoms, 2019. "Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh," Journal of Business Venturing, Elsevier, vol. 34(4), pages 625-645.
    15. Brixiova Schwidrowski, Zuzana & Ncube, Mthuli, 2013. "Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia," IZA Discussion Papers 7553, IZA Network @ LISER.
    16. Rajeev K. Goel & James W. Saunoris, 2020. "Does income inequality sand or grease the wheels of entrepreneurial activity? International evidence," Australian Economic Papers, Wiley Blackwell, vol. 59(2), pages 138-160, June.
    17. Hyejin Jung & Inseok Seo & Kyujin Jung, 2018. "Mediating Role of Entrepreneurship in Explaining the Association Between Income Inequality and Regional Economic Performance," Economic Development Quarterly, , vol. 32(2), pages 135-145, May.
    18. Qinghao Wang & Chentao Zhang & Mingyue Gong & Beiqi Zhu, 2024. "Village Organization and Sustainable Growth of Farmers’ Income: An Empirical Study Based on Dynamic Survey Data of the Labor Force in China," Sustainability, MDPI, vol. 16(21), pages 1-25, October.
    19. Naudé, Wim, 2011. "Entrepreneurship is Not a Binding Constraint on Growth and Development in the Poorest Countries," World Development, Elsevier, vol. 39(1), pages 33-44, January.
    20. Lawrence Adu Asamoah & Francesco Figari & Andrea Vezzulli, 2021. "Spillover effects of innovation and entrepreneurial activity on income inequality in developing countries: A spatial panel approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1661-1686, October.

    More about this item

    Keywords

    ;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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