IDEAS home Printed from https://ideas.repec.org/p/lvl/pmmacr/2006-20.html
   My bibliography  Save this paper

Measurement and Sources of Income Inequality among Rural and Urban Households in Nigeria

Author

Listed:
  • Abayomi Samuel Oyekale
  • Adetola Ibidunni Adeoti
  • Tolulope Olayemi Oyekale

Abstract

Income inequality and poverty are closely related. This study decomposed income inequality in Nigeria using the Gini-decomposition, regression-based and Shapley approaches. Results show that in 2004, income inequality is higher in rural areas than in urban areas. The study also noted that employment income increases inequality while agricultural income decreases inequality. Factors suchs as urbanization, residence in the southwest zone, household size, the house head's formal education, number of time suffered from illness, engagement in a paid job, involvement in a non-farm business, formal credit and informal credit contributed to the increased income inequality. Between 1998 and 2004, income redistribution and income growth increased poverty. The study recommended that welfare enhancing programs that will benefit urban/rural poor should be identified, while better economic opportunities should be created for those in rural areas.

Suggested Citation

  • Abayomi Samuel Oyekale & Adetola Ibidunni Adeoti & Tolulope Olayemi Oyekale, 2006. "Measurement and Sources of Income Inequality among Rural and Urban Households in Nigeria," Working Papers PMMA 2006-20, PEP-PMMA.
    • Handle: RePEc:lvl:pmmacr:2006-20
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/13556
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Clarke, George & Xu, Lixin Colin & Zou, Heng-fu, 2003. "Finance and income inequality : test of alternative theories," Policy Research Working Paper Series 2984, The World Bank.
    2. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
    3. Kanbur, Ravi & Lustig, Nora, 1999. "Why is Inequality Back on the Agenda?," Working Papers 127690, Cornell University, Department of Applied Economics and Management.
    4. A.B. Atkinson & F. Bourguignon (ed.), 2000. "Handbook of Income Distribution," Handbook of Income Distribution, Elsevier, edition 1, volume 1, number 1.
    5. Rosenzweig, Mark R & Schultz, T Paul, 1989. "Schooling, Information and Nonmarket Productivity: Contraceptive Use and Its Effectiveness," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 457-477, May.
    6. Gary S. Fields & Gyeongjoon Yoo, 2000. "Falling Labor Income Inequality In Korea'S Economic Growth: Patterns And Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-159, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ayinde, Opeyemi Eyitayo & Muchie, Mammo & Babatunde, Raphael O. & Adewumi, Matthew Olaniyi & Ayinde, Kayode & Ibitoye, Olalekan, 2012. "Analysis Of Income Inequality In Nigerian Agricultural Economy: A Case Study Of Ekiti State," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126228, International Association of Agricultural Economists.
    2. Oluwakemi Adeola Obayelu, 2014. "Spatial Decomposition Of Poverty In Rural Nigeria: Shapley Decomposition Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 77-97, December.
    3. Adeola, Olajide O. & Doppler, W., 2011. "Family Income and Cash Flow of Rural Households in South East Nigeria: A Comparative and Gender – Based Analysis," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 1(4), pages 1-11, December.
    4. Omotola, Aderonke M. & Okoruwa, Victor O., 2016. "Inclusive Growth pattern in Rural Southwestern Nigeria: Opportunities and Challenges," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249313, African Association of Agricultural Economists (AAAE).
    5. Awoniyi, Olabisi A. & Falusi, Abiodun O. & Adeoti, Adetola I., 2009. "Decomposition Analysis of Political Inequality among Rural Households in Nigeria," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 18, pages 1-9.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eva Militaru & Madalina Ecaterina Popescu & Amalia Cristescu & Maria Denisa Vasilescu, 2019. "Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    2. Stefano Pettinato, 2002. "A Conceptual Primer on the Currents and Trends in Inequality," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 3(1), pages 23-56.
    3. Kodila-Tedika, Oasis & Ngunza Maniata, Kevin, 2018. "Financial Constraints and Poverty," MPRA Paper 84839, University Library of Munich, Germany.
    4. Manoel Bittencourt, 2010. "Financial development and inequality: Brazil 1985–1994," Economic Change and Restructuring, Springer, vol. 43(2), pages 113-130, May.
    5. Jean-Pierre Lachaud, 2003. "Les déterminants de l'inégalité du bien-être au Burkina Faso : une décomposition de régression," Documents de travail 85, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    6. Karagiannaki, Eleni, 2017. "The empirical relationship between income poverty and income inequality in rich and middle income countries," LSE Research Online Documents on Economics 86917, London School of Economics and Political Science, LSE Library.
    7. Eleni Karagiannaki, 2017. "The empirical relationship between income poverty and income inequality in rich and middle income countries," CASE Papers /206, Centre for Analysis of Social Exclusion, LSE.
    8. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 179-197, August.
    9. Abu Bakkar Siddique, 2016. "Comparative Advantage Defying Development Strategy and Cross Country Poverty Incidence," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(4), pages 45-78, December.
    10. Christophe Ehrhart, 2009. "The effects of inequality on growth: a survey of the theoretical and empirical literature," Working Papers 107, ECINEQ, Society for the Study of Economic Inequality.
    11. repec:pru:wpaper:24 is not listed on IDEAS
    12. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.
    13. Gelaw, Fekadu, 2009. "The Relationship Between Poverty, Inequality, and Growth in the Rural Ethiopia: Micro Evidence," 2009 Conference, August 16-22, 2009, Beijing, China 51915, International Association of Agricultural Economists.
    14. Oihana Aristondo & Casilda Lasso De La Vega & Ana Urrutia, 2010. "A New Multiplicative Decomposition For The Foster–Greer–Thorbecke Poverty Indices," Bulletin of Economic Research, Wiley Blackwell, vol. 62(3), pages 259-267, July.
    15. Natalia da Silva & Ignacio Alvarez-Castro, 2019. "Clicks and cliques: exploring the soul of the community," Computational Statistics, Springer, vol. 34(4), pages 1537-1563, December.
    16. David Bravo & Dante Contreras & Sergio Urzúa, 2002. "Poverty and Inequality in Chile 1990-1998: Learning from Microeconomic Simulations," Working Papers wp198, University of Chile, Department of Economics.
    17. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    18. Cem Baslevent & Meltem Dayoglu, 2005. "The Effect of Squatter Housing on Income Distribution in Urban Turkey," Urban Studies, Urban Studies Journal Limited, vol. 42(1), pages 31-45, January.
    19. Portner, Claus C & Beegle, Kathleen & Christiaensen, Luc, 2011. "Family planning and fertility : estimating program effects using cross-sectional data," Policy Research Working Paper Series 5812, The World Bank.
    20. Casanova, Luis. & Alejo, Javier., 2015. "El efecto de la negociación colectiva sobre la distribución de los ingresos laborales evidencia empírica para Argentina en los años dos mil," ILO Working Papers 994875473402676, International Labour Organization.
    21. Frick, Joachim R. & Grabka, Markus M. & Smeeding, Timothy M. & Tsakloglou, Panos, 2010. "Distributional Effects of Imputed Rents in Five European Countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(3), pages 167-179.

    More about this item

    Keywords

    Income inequality; poverty; decomposition; economic opportunities; Nigeria;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:pmmacr:2006-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.