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Entrepreneurship and Income Inequality in Southern Ethiopia

  • Kimhi, Ayal

This paper uses inequality decomposition techniques in order to analyse 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 favourable 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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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2009/RP2009-05.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2009/05.

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Length: 15
Date of creation: 2009
Date of revision:
Handle: RePEc:unu:wpaper:rp2009-05
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  1. Grace Carswell, 2002. "Livelihood diversification: increasing in importance or increasingly recognized? Evidence from southern Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 789-804.
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