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Does Non-farm Income Improve or Worsen Income Inequality? Evidence from Rural Ghana
African Review of Economics and Finance
View Archive Info| Field | Value | |
| Title |
Does Non-farm Income Improve or Worsen Income Inequality? Evidence from Rural Ghana
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| Creator |
Senadza, B
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| 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.
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| Publisher |
Rhodes University
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| Date |
2013-03-28
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
https://www.ajol.info/index.php/aref/article/view/86951
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| Source |
African Review of Economics and Finance; Vol. 2 No. 2 (2011); 104-121
2042-1478 |
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| Language |
eng
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| Relation |
https://www.ajol.info/index.php/aref/article/view/86951/76729
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