Record Details

Does Non-farm Income Improve or Worsen Income Inequality? Evidence from Rural Ghana

African Review of Economics and Finance

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Field Value
 
Title Does Non-farm Income Improve or Worsen Income Inequality? Evidence from Rural Ghana
 
Creator Senadza, B
 
Subject —
 
Description This paper uses nationally representative household survey data of 2006 to examine the effect of non-farm income on income inequality in rural Ghana. Employing the Gini-decomposition technique, results indicate that aggregate non-farm income increased income inequality among rural households in Ghana. In terms of its components, while non-farm self-employment income reduced income inequality, non-farm wage income increased income inequality. A factor-decomposition of inequality revealed that education is the single most important variable contributing to the inequality-increasing nature of non-farm income. The effect of education on inequality is more pronounced for non-farm wage income. The policy implication is for a narrowing of education inequality among rural households in Ghana to create greater access to non-farm employment to reduce rural income inequality and poverty.
 
Publisher Rhodes University
 
Contributor —
 
Date 2013-03-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.ajol.info/index.php/aref/article/view/86951
 
Source African Review of Economics and Finance; Vol 2, No 2 (2011); 104-121
2042-1478
 
Language eng
 
Relation https://www.ajol.info/index.php/aref/article/view/86951/76729
 
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