Structure Of Income Inequality And Poverty In Nigeria Pdf

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Existing studies have shown that income inequality remains a core determinant of population health. However, this assertion remains unclear for Sub-Saharan Africa SSA , despite the rising trend of income disparity in the region and the vastness of the studies that tested the validity of the IIHH. This inferential study, therefore, examines the effect of income inequality on health for 31 Sub-Saharan African countries from to using life expectancy at birth, infant mortality rate, and under-five mortality rate as indicators of population health, as well as the Gini index as a measurement of income inequality.

Economic inequality

Income inequality and poverty have become key issues in development studies since the s. Although theoretically there are various factors associated with the incidence of poverty and income inequality, choices regarding the types and structure of government expenditure are often quoted as one of the crucial determinants. However, the evidence is still inconclusive, and the research about these issues in the case of Indonesia is still minimum. This paper tries to contribute to the discussion by analysing a panel data set of 33 provinces from to to examine the effect of different types of government expenditure on income inequality and poverty in Indonesia. Using the fixed effect, random effect, and Seemingly Unrelated Regression SURE system, this paper finds that social aid, subsidy and grant expenditure have an insignificant effect on reducing income inequality and poverty in Indonesia. However, the empirical evidence suggests that infrastructure spending has a negative correlation with income inequality in urban areas when using the random effect model , and rural areas when using the fixed effect model.

Metrics details. Financial inclusion is a key element of social inclusion, particularly useful in combating poverty and income inequality by opening blocked advancement opportunities for disadvantaged segments of the population. This study intends to investigate the impact of financial inclusion on reducing poverty and income inequality, and the determinants and conditional effects thereof in developing countries. The analysis is carried out using an unbalanced annual panel data for the period of — For this purpose, we construct a novel index of financial inclusion using a broad set of financial sector outreach indicators, finding that per capita income, ratio of internet users, age dependency ratio, inflation, and income inequality significantly influence the level of financial inclusion in developing countries. Furthermore, the results provide robust evidence that financial inclusion significantly reduces poverty rates and income inequality in developing countries. Financial inclusion connotes all initiatives that make formal financial services accessible and affordable, primarily to low-income people.

Economists use various metrics for measuring income inequality. Here, the most commonly used measures—the Lorenz curve, the Gini coefficient, decile ratios, the Palma ratio, and the Theil index—are discussed in relation to their benefits and limitations. Equally important is the choice of what to measure: pre-tax and after-tax income, consumption, and wealth are useful indicators; and different sources of income such as wages, capital gains, taxes, and benefits can be examined. Understanding the dimensions of economic inequality is a key first step toward choosing the right policies to address it. The Lorenz curve is a commonly used metric that allows for the quick and visual comparison of inequality across countries. Percentile ratios are easy to calculate and focus on a specific region of the distribution.

Poverty in Nigeria

In an unequal and fragile economy such as Nigeria, providing for the extreme poor, marginalized, disadvantaged, less privileged and vulnerable is still seen by elites as providing for the unproductive segment. This notion seems to be one of the reasons why the elites in government have not done much to scale down poverty and inequality. The study estimates the poverty impact of variations in within-group and between-group inequality using two sequential household survey data, the harmonized national living standard survey, and the national living standard survey, Specifically, the study explains the spatial and sectoral variations in estimates of the marginal poverty impact and elasticity with respect to within-group and between-group inequality. This is a preview of subscription content, access via your institution.

Some people imagine that in a rich region like the EU no one can be poor or if they are it must be the result of some personal failings or problems. However, this is not the case. The overall persistent high level of poverty in the EU suggest that poverty is primarily the consequence of the way society is organised and resources are allocated, whether these are financial or other resources such as access to housing, health and social services, education and other economic, social and cultural services. In times of austerity, some political choices made have deepened poverty and inequalities cuts in income and services, deregulation of the labour market…. Indeed, the fact that there are very different levels of poverty in different Member States demonstrates clearly that different approaches to allocating resources and opportunities lead to different outcomes. The least unequal societies in Europe tend to have the lowest levels of poverty , and to have been less impacted by the crisis.

PDF | The main features of poverty are low levels of consumption and income, Income Inequality, Unemployment, and Poverty in Nigeria: a Vector Autoregressive Approach altering of the structure of power in the society.

Causes of poverty and inequality

This article features the analysis and comparative assessment of a set of studies on the dynamics and drivers of and policy responses to inequalities in the context of structural transformation in Africa, including an overview paper, seven country studies, and a paper on gendered assets inequalities, all published in abridged versions in Development 57 3—4 Armah et al. Drawing from these studies, it explores the conceptual frameworks, the key domains and the main drivers of inequalities. It further examines recent policy interventions and outlines policy implications, providing a preliminary basis for setting an agenda for research and advocacy to support African and country efforts to tackle the deepening inequalities and achieve structural transformation.

Nigeria had one of the world's highest economic growth rates, averaging 7. In during its first recession in 25 years, the economy contracted by 1. Poverty in Nigeria can also be caused by the political instability of the country.

Poverty in Nigeria


The incidence of poverty is evidenced among rural farm households in developing societies. As a result of persistence poverty among rural farm households, there is sudden upsurge in agricultural livelihood diversification and rural-urban migration resulting in high rate of urban unemployment. To help generate suitable policThe incidence of poverty is evidenced among rural farm households in developing societies.

There are wide varieties of economic inequality , most notably measured using the distribution of income the amount of money people are paid and the distribution of wealth the amount of wealth people own. Besides economic inequality between countries or states, there are important types of economic inequality between different groups of people. Important types of economic measurements focus on wealth , income , and consumption. There are many methods for measuring economic inequality, [3] with the Gini coefficient being a widely used one. Another type of measure is the Inequality-adjusted Human Development Index , which is a statistic composite index that takes inequality into account. Research suggests that greater inequality hinders economic growth, with land and human capital inequality reducing growth more than inequality of income. In , the ratio between the income of the top and bottom 20 percent of the world's population was three to one.

The relationship between income inequality and economic growth is undoubtedly intricate as inequality can promote the effective functioning of the economy and provide incentives required for investment and growth. It could, on the other hand, amplify the risk of crisis and pose a serious difficulty for the poor to invest in education, thereby constituting a threat to the economic growth process. It has generated a series of protests in the Middle East and North Africa MENA region since , with unprecedented demand for more economic and political inclusion, as several individuals can no more bear the prevailing gross socioeconomic inequality [ Ncube et al. The rise in the concern over the widening gap between the rich and the poor also led to the Occupy Wall Street movement, 1 as well as motivating a series of backlashes against international trade in many industrialized nations. Economists across the world remain perturbed as the lopsidedness in the sharing of growth dividend can undermine the support required for progrowth policies and could probably lead to political instability [ Yang and Greaney, ]. These channels are as follows: the saving channel, the credit market imperfection channel, the human capital investment channel, the political economy or fiscal policy channel, the fertility differential channel, and the sociopolitical instability channel. Emerging trends on the inequality—growth nexus for Africa indicate rising levels of income inequality in the region, which poses serious and potential challenges for the economic growth in Africa.

literature shall be gleaned for related findings on the relationship between income inequality,. poverty and economic growth in Nigeria.

Inequality and Fiscal Policy


  1. Jade M. 10.06.2021 at 05:24

    Nigeria had one of the world's highest economic growth rates, averaging 7.

  2. Anolfo R. 14.06.2021 at 19:03

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  3. Danielle F. 16.06.2021 at 07:52

    Inequality is at the forefront of the economic policy debate in much of the world.