Sources of Income Inequality in Nigeria

Author(s):  
A. S. Oyekale ◽  
A. I. Adeoti ◽  
T. O. Oyekale

Income inequality and poverty in Nigeria are closely related. This chapter analyzes the contributions of income sources and socio-economic factors to income inequality, and estimates the contributions of income redistribution and growth to poverty reduction. Household survey data obtained from the National Bureau of Statistics (NBS) are used. Results show that in 2004, income inequality was higher in rural than in urban areas. Wage and non-farm income made the largest contributions to urban income inequality, while agricultural and wage incomes contributed most to rural inequality. Household size, urbanization, and education significantly increased income inequality, while age, paid/salaried jobs, and non-farm enterprises decreased it (p<0.05). Between 1998 and 2004, income redistribution reduced poverty but income growth increased it. The authors therefore recommend that welfare enhancing programs that benefit the poor should be identified and that better economic opportunities should be created for those in rural areas.

Author(s):  
Séverin Aimé Blanchard Ouadika

AbstractThe analysis of the link between poverty and health status in developing countries is a major focus of development policy. However, few studies, particularly in the Congo, focus on a prospective analysis of poverty and consider the variability of future consumption after a health shock. The objective of this study is to estimate vulnerability to poverty and analyse the factors that lead to a loss of well-being after a health shock in Congo. The study uses data from the 2011 Congolese Household Survey (CHS). Estimation of vulnerability to poverty and modelling of the effect of the health shock on expected future consumption are performed using the three-step feasible generalized least squares (FGLS) method. This method is also used to identify the socio-demographic determinants of vulnerability. On average, 26.8% of households are vulnerable to poverty in Congo. Health shocks accentuate this vulnerability. Households living in rural areas are more vulnerable to poverty than those in urban areas. Furthermore, household size and the level of education and marital status of the head of household have an impact on vulnerability. In view of the results obtained, poverty reduction efforts should focus on strategies to develop social safety nets and/or health insurance programmes to stabilize consumption in the event of a health shock in the household.


2021 ◽  
Vol 9 (3) ◽  
pp. 53-65
Author(s):  
Abu Bakarr Turay ◽  

Household poverty is widespread in Sierra Leone, affecting about 6 out of every 10 persons, which calls for urgent policy action. This study used the 2018 Sierra Leone Integrated Household Survey (2018 SLIHS) and a logistic model to analyze the influence of socio-economic characteristics of the household and household head on poverty. The analysis has shown that living in rural areas, having no formal education, or being unemployed, significantly increases the probability of a household being in extreme poverty. Other factors contributing to household extreme poverty status were: have a large household size with many children below 10 years, being separated from a spouse (widowed or divorced), being disabled, and working in the agriculture sector. On the other hand, the characteristics that decrease the probability of a household being poor include being a female household head, having at least secondary school education (notably tertiary education), residing in urban areas or cities, working in the services sector, and being single or married. Therefore, enhancing service delivery through a viable decentralization process, and supporting easily accessible quality education programmes, especially tertiary education, are critical for meaningful poverty reduction across all sections of the population. Keywords: Poverty, household, socio-economic characteristics, logistics model.


2017 ◽  
Vol 8 (4) ◽  
pp. 515-526
Author(s):  
Jacob Novignon

Purpose The purpose of this paper is to decompose income inequality across various household income components and to estimate the marginal effects of changes in each of the income components on overall income inequality in Ghana. Design/methodology/approach Data were collected from the fifth and sixth rounds of the Ghana Living Standards Surveys. Gini coefficient was estimated and decomposed across structured income components. The marginal effects were obtained by computing the partial derivatives of the Gini coefficient with respect to a percentage change in a particular income source. Findings The results suggest that, in general, income inequality has increased marginally over the years (Gini coefficient of 0.66 in 2013 and 0.62 in 2006). Inequality was, however, higher in urban areas than in rural areas in 2013 with the reverse observed in 2006. The income component decomposition analysis suggests that wage employment income dominated household income in both rural and urban areas, even though the magnitude was higher in urban areas. Farm income was only dominant in rural communities in 2006. Self-employment and remittance income had consistent inequality reducing effects on total household income distribution. Originality/value The study goes beyond inequality studies in Ghana to estimate the marginal effect of income components on inequality. Such decomposition will allow for effective policy targeting in a resource-constrained developing country like Ghana.


2020 ◽  
pp. 26
Author(s):  
Hosnieh Mahoozi ◽  
Jeurgen Meckl

Concerning the demands of Sen’s (1984) Capability Approach to the assessment of human well-being, we estimate multidimensional poverty and compare the results with traditional measures of income poverty in Iran. We detect poverty in urban and rural Iran over 1999-2007, a period with relatively high GDP growth. The results reveal that the pace of income poverty reduction is much faster than the pace of multidimensional poverty alleviation. The pace of poverty reduction is much slower in rural areas than in urban areas and the capital city, Tehran. Hence, inequality between rural and urban areas increased over the time. We also show how policymakers may benefit from applying the multidimensional approach in targeting the subgroups by the most deprived aspects.


Author(s):  
Sofian A. A. Saadv ◽  
Amin Adam

<p>The main aim of this paper is to find out the relationship between the household level of income and the level of education for the household being lived in southern Darfur state (Sudan) since they were seriously affected by the war conflict and lost most of their income sources. One-way Analyses of Variance (ANOVA) have been used to asses this relation where the independent variable and dependent variables are categorical and continuous respectively. Data gathered from Household survey (HHS) is analyzed. The results indicate the existence of relationship between certain education groups and the level of income, mainly high level of education comparing with the low level.</p>


2020 ◽  
Vol 12 (18) ◽  
pp. 7332
Author(s):  
Waheed Mobolaji Ashagidigbi ◽  
Bashirat Adenike Babatunde ◽  
Adebayo Isaiah Ogunniyi ◽  
Kehinde Oluseyi Olagunju ◽  
Abiodun Olusola Omotayo

The sustainable use of clean and safe sources of energy is indeed a global challenge. Traditional and unsafe forms of energy use is predominant among households in sub-Saharan Africa. This is not only a threat to the environment, but also constitutes health risk to the population. In the Nigeria context, this study provides the first attempt to estimate household energy poverty status and also investigate the driving factors of household energy poverty status using the National Demographic Health Survey (NDHS) dataset. The analytical techniques adopted in this study are based on Multidimensional Energy Poverty Index (MEPI) and Tobit regression model. Our results show that national average MEPI was 0.38, suggesting that majority of the households are energy poor. Energy poverty is however found to be higher in rural areas than in urban areas. We also found that male-headed households, age, rural sector and northeast residents are found to be the energy poverty enhancing factors, while household income and credit access are energy poverty inhibiting factors. The study concludes that income smoothening among other energy poverty reduction interventions should be prioritized, especially among rural households in order to help them exit energy poverty trap.


2018 ◽  
Vol 49 (3) ◽  
pp. 231-238 ◽  
Author(s):  
Adeniyi Felix Akinrinde ◽  
Kemi Funmilayo Omotesho ◽  
Israel Ogulande

The rising incidences of poverty among rural farming families are the reason behind renewed interest in income diversification. This study determined the level of income diversification; identified alternative income sources; examined the reasons for diversification; and identified the constraints to diversification. A three-stage random sampling technique was used in selecting 160 households on which a structured interview schedule was administered. Descriptive statistics, a Likert-type scale, and the Pearson’s Product Moment Correlation were used for data analyses. Findings reveal that 1.3% of the households had no additional sources of income while 40.6% had at least four. Trading (55%) and livestock keeping (40.7%) were the most popular alternative income sources. The declining farm income (mean = 2.96) was the primary reason for diversification, while poor rural infrastructure (mean = 3.04) was the most severe constraint to income diversification. Farm size, access to extension services, household size, age and educational level of the household head were significantly related to the level of income diversification at p < 0.05. The study concluded that the level of income diversification was high and influenced by socioeconomic characteristics of the households. It recommends that the government should provide adequate infrastructural facilities in rural areas. Farmer associations should also ensure better prices for agricultural produce through joint marketing.


Author(s):  
Maretha Berlianantiya Muhammad Ridwan Eka Wardani

<p><em>Poverty often occurs in rural areas rather than urban areas, low education which results in low quality of human resources and lack of access is often the cause of rural poverty. In addition, most of the economies of rural communities rely solely on the traditional agricultural sector. Various poverty reduction policies have been implemented, including village fund policies. This study aims to examine the management of village funds in the Balong sub-district of Madiun Regency with a case study in the villages of Tatung and Karangmojo villages covering the management of village funds in Tatung village and Karangmojo village. Balong Subdistrict and the impact of empowerment in the villages of Tatung and Karangmojo, Balong District. This research was conducted in Balong Subdistrict, Ponorogo Regency with a Case study in Tatung Village and Karangmojo Village with qualitative methods. In the village of Tatung village funds are managed as tourist villages with a focus on Paragliding tourist rides. Whereas in Karangmojo village it is used for Bumdes in the form of Lovebird birds, providing Gapoktan assistance, and infrastructure development.</em></p>


2021 ◽  
Vol 5 (Supplement_2) ◽  
pp. 229-229
Author(s):  
Yunhee Kang ◽  
Anurima Baidya ◽  
Alec Aaron ◽  
Jun Wang ◽  
Christabel Chan ◽  
...  

Abstract Objectives Lockdowns due to COVID-19 had health, economic, social, and political consequences globally. This study examined if the early impact of COVID-19 on livelihoods and food security differed between rural and urban areas in six Asia-Pacific countries. Methods Secondary data analysis was conducted in May 2029 using a total of 13,522 household survey data collected cross-sectionally among socially disadvantaged populations through a World Vision's rapid response assessment (n = 13,522) in Bangladesh, India, Indonesia, Philippines, Myanmar, and Vietnam. Changes in food expenditure, availability of various food items, and accessibility and affordability of essential items (staple food, fresh foods, medicine, and hygiene) were tested between rural and urban areas using multivariate logistic regressions, accounting for confounding variables. Results Job loss or reduced income was prevalent (rang: 54.1%–89.6%), higher in urban than rural areas in all six countries. A higher percentage of households reduced food expenditure in urban areas (53.0%–80.3%) than in rural areas (34.2%–66.4%) in India, Myanmar, and Vietnam (all P &lt; 0.001). The proportion of households having no food stock varied in six countries (13.4%-66.0%), with lower odds of available food stocks in urban areas than rural areas (OR range in Bangladesh, India, and Myanmar: 0.30–0.53, all P &lt; 0.05). Access to essential items was moderate to high depending on the type of item. Essential medicines were more accessible in urban than in rural areas with an OR range of 1.88–5.63 in India, Myanmar, and Vietnam. Household affordability was low particularly for rent (3.8%-16.6%) and loan repayment (3.3%-19.9%), with higher affordability for rent payments in urban than in rural areas with an OR range of 1.98–22.2 across four countries (P &lt; 0.05). Access and affordability for essential items were better in urban areas than in rural areas in Vietnam. Conclusions Disproportional differences were found in experiencing food security and livelihoods between rural and urban areas in six Asia Pacific countries. An understanding of the differential implications of lockdowns related to COVID-19 by residence can inform specifically recovery policies and guide mitigation efforts. Funding Sources N/A


2017 ◽  
Vol 34 (4) ◽  
pp. 466-484 ◽  
Author(s):  
Varun Chotia ◽  
N.V.M. Rao

Purpose The purpose of this paper is to investigate the relationship between infrastructure development, rural–urban income inequality and poverty for BRICS economies. Design/methodology/approach Pedroni’s panel co-integration test and panel dynamic ordinary least squares (PDOLS) have been used to carry out the analysis. Findings The empirical findings confirm a long-run relationship among infrastructure development, poverty and rural–urban inequality. The PDOLS results suggest that both infrastructure development and economic growth lead to poverty reduction in BRICS. However, rural–urban income inequality aggravates poverty in these nations. The paper advocates for adopting policies aimed at strengthening infrastructure and achieving economic growth to reduce the current levels of poverty prevailing in the BRICS nations. Originality/value Significant limitations exist in the literature in terms of not clearly defining the nature of relationship and interlinkages between infrastructure development, poverty and inequality, with regard to the BRICS nations. The available studies mainly focus on the relationship between infrastructure and growth, with the universal agreement being that these two are positively related. However, it is still not right to assume that economic growth attributable to infrastructure development will, therefore, subsequently lead to a reduction in inequality. This forms the basis for this study, that is, to critically examine the relationship between infrastructure development, inequality and poverty for BRICS nations.


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