Household income inequality in Ghana: a decomposition analysis

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 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tushar Agrawal

PurposeThe purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.Design/methodology/approachThe author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.FindingsThe results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.Originality/valueWhile much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.


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.


2016 ◽  
Vol 43 (2) ◽  
pp. 205-220 ◽  
Author(s):  
Siti Badariah Saiful Nathan ◽  
M. Mohd Rosli

Purpose – The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a relatively developed rural area of the Malaysian rice bowl. Design/methodology/approach – The non-farm incomes were disaggregated into different components to determine the contribution of each income source to total household income and overall inequality. The income distribution and decomposition was examined using the Gini decomposition method. Findings – It was found that almost 71 percent of the households in the sample had at least one source of non-farm income. On average, non-farm incomes contributed about 33 percent to total household income. Non-farm wage employment was the dominant source of non-farm income, accounting for almost 26 percent of overall household income. The farm incomes, especially the paddy incomes were found to be the inequality-decreasing income source. The study also confirmed the proposition that the non-farm incomes were the inequality-increasing income source as they contributed up to 35 percent of the overall income inequality. Originality/value – Previous studies have found that non-farm incomes have different effects on income inequality of rural communities, especially those in the rice granary areas situated in less developed states of Malaysia, where poverty is still a problem. This study is significant because it identifies the effect of certain incomes on the overall income inequality among farm households in the granary areas located in a relatively developed rural area. The studied areas are characterized by an intensive paddy production and a rapid development in business and industrial activities, and hence, providing non-farm employment opportunities to the rural farmers. Therefore, this study shows the income structure and how farm and non-farm incomes affect the overall income distribution of the paddy farmers.


2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.


SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110299
Author(s):  
Sri Irianti ◽  
Puguh Prasetyoputra

One of the targets in the Sustainable Development Goals (SDGs), which is Target 6.2, aims to achieve access to adequate and equitable sanitation. The Government of Indonesia targets universal access to improved sanitation in 2019. However, almost two out of five households in Indonesia are without access to improved sanitation. Moreover, access to improved sanitation is lower in rural areas than that in urban areas. Studies examining the drivers of the disparity in Indonesia are also limited. Therefore, this study was aimed at assessing the characteristics associated with the rural–urban disparity in access to improved sanitation facilities among households in Indonesia. We employed data from the 2016 Indonesian National Socio-Economic Survey (SUSENAS) comprising 290,848 households. The analysis was twofold. First, we fitted multivariate probit regression models using average marginal effects as the measure of association. We then conducted a detailed non-linear decomposition of the rural–urban disparity attributable to all the explanatory variables. The multivariate regression analysis suggested that households living in rural areas were 11.35% (95% confidence interval = [10.97, 11.72]) less likely to have access to improved sanitation facilities than those residing in urban areas. The decomposition analysis suggested that 48.78% are attributable to spatial, demographic, housing, and socio-economic factors, which meant that almost half of the inequalities could be reduced by equalizing these factors. The results provide a decomposition of factors amenable to curtail urban–rural inequalities. Hence, equity-oriented approaches to increasing access to improved sanitation should be prioritized to achieve universal access in 2030 in line with SDG Target 6.2.


2017 ◽  
Vol 44 (6) ◽  
pp. 715-731 ◽  
Author(s):  
Ivy Drafor

Purpose The purpose of this paper is to analyse the spatial disparity between rural and urban areas in Ghana using the Ghana Living Standards Survey’s (GLSS) rounds 5 and 6 data to advance the assertion that an endowed rural sector is necessary to promote agricultural development in Ghana. This analysis helps us to know the factors that contribute to the depravity of the rural sectors to inform policy towards development targeting. Design/methodology/approach A multivariate principal component analysis (PCA) and hierarchical cluster analysis were applied to data from the GLSS-5 and GLSS-6 to determine the characteristics of the rural-urban divide in Ghana. Findings The findings reveal that the rural poor also spend 60.3 per cent of their income on food, while the urban dwellers spend 49 per cent, which is an indication of food production capacity. They have low access to information technology facilities, have larger household sizes and lower levels of education. Rural areas depend a lot on firewood for cooking and use solar/dry cell energies and kerosene for lighting which have implications for conserving the environment. Practical implications Developing the rural areas to strengthen agricultural growth and productivity is a necessary condition for eliminating spatial disparities and promoting overall economic development in Ghana. Addressing rural deprivation is important for conserving the environment due to its increased use of fuelwood for cooking. Absence of alternatives to the use of fuelwood weakens the efforts to reduce deforestation. Originality/value The application of PCA to show the factors that contribute to spatial inequality in Ghana using the GLSS-5 and GLSS-6 data is unique. The study provides insights into redefining the framework for national poverty reduction efforts.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gulsan Ara Parvin ◽  
Nina Takashino ◽  
Md. Shahidul Islam ◽  
Md. Habibur Rahman ◽  
Md. Anwarul Abedin ◽  
...  

Purpose This study aims to explore whether socio-economic factors determine the level of menstrual knowledge and perceptions of schoolgirls in Bangladesh. The aim of this study is to understand how knowledge and perceptions vary with variations in the different socio-economic factors in a schoolgirl’s life such as place of residence, religion, age, grade, parents’ education, parents’ occupation, family income and even family size. Design/methodology/approach Data were collected from four schools (two in urban areas and two in rural areas). A total of 450 schoolgirls from grades V–X were interviewed to examine how knowledge and perceptions varied with different socio-economic aspects. Multiple logistic regression models were used to measure the associations between various socio-economic variables and perceptions of and knowledge about menstruation. Findings Respondents from urban areas were 4.75 times more likely and those 14–16 years old were two times more likely to report higher levels of knowledge about menstruation compared to their counterparts. Based on the father’s occupation, respondents whose father was engaged in a professional occupation were 1.983 times more likely to have a higher level of knowledge on menstruation compared to those whose fathers were in an unskilled profession. Similarly, the odds of positive perceptions on menstruation were 1.456 and 1.987 times higher, respectively, among respondents living in urban areas and those 14–16 years old, compared to their counterparts. Originality/value This study provides evidence that different socio-economic and even demographic factors are important in the development of menstrual knowledge and perceptions. Policy formulation and development actions related to adolescent girls’ physical and reproductive health development need to consider these factors in Bangladesh and in other developing countries, where poor knowledge and perception related to menstruation are hindering girls’ mental and physical development. This is expected that better knowledge and perception will facilitate girls’ right to have better health and social lives.


2009 ◽  
pp. 34
Author(s):  
Ayal Kimhi

Differentiating between the sensitivity of income inequality to male income and female income and decomposing inequality by income determinants, we find that total income inequality is less sensitive to female income variability or the level of female income, than to male income variability or the level of male income. Uniform increases in education reduce income inequality, with increases in female education having a larger effect than increases in male education. An increase in the population fraction of ethnic minorities has a positive effect on inequality, but this operates mostly through female income. All this suggests that female income is the most adequate target for inequality-reducing policy, and that within-household gender equality is good for reducing income inequality among households.


2021 ◽  
Author(s):  
Shekhar Chauhan ◽  
Shobhit Srivast ◽  
Pradeep Kumar ◽  
Ratna Patel

Abstract Background: Multimorbidity is defined as the co-occurrence of two or more than two diseases in the same person. With rising longevity, multimorbidity has become a prominent concern among the older population. Evidence from both developed and developing countries shows that older people are at much higher risk of multimorbidity, however, urban-rural differential remained scarce. Therefore, this study examines urban-rural differential in multimorbidity among older adults by decomposing the risk factors of multimorbidity and identifying the covariates that contributed to the change in multimorbidity.Methods: The study utilized information from 31,464 older adults (rural-20,725 and urban-10,739) aged 60 years and above from the recent release of the Longitudinal Ageing Study in India (LASI) wave 1 data. Descriptive, bivariate, and multivariate decomposition analysis techniques were used.Results: Overall, significant urban-rural differences were found in the prevalence of multimorbidity among older adults (difference: 16.3; p<0.001). Moreover, obese/overweight and high-risk waist circumference were found to narrow the difference in the prevalence of multimorbidity among older adults between urban and rural areas by 8% and 9.1%, respectively.Conclusion: There is a need to substantially increase the public sector investment in healthcare to address the multimorbidity among older adults, more so in urban areas, without compromising the needs of older adults in rural areas.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Florina Guadalupe Arredondo-Trapero ◽  
José Carlos Vázquez-Parra ◽  
Martín De Jesús González-Martínez

Purpose The aim of this study is to analyse teachers’ perceptions of information and communication technologies (ICT) and the effect they have on their students, comparing male and female teachers in rural and urban areas of Mexico. Design/methodology/approach This is a quantitative study with a validated questionnaire that records the perception of school teachers from a state in the northeast of Mexico. The questionnaire was designed by interviewing 20 teachers who have had problematic situations in the use of technology by students. The main problems that were perceived in their students were cyberbullying, cyberviolence, online pornography, excessive use of videogames and also lack of ability to use digital technology. Hypothesis testing was applied to identify differences between gender (female or male) and region (rural or urban), considering these problems and the efforts made by the school to address these issues. Findings Both the gender of the teaching staff and the region where the school is located are variables that are influencing the willingness to incorporate ICT issues that are affecting the well-being of students into the educational agenda. While teachers are the main actors in preparing their students on how to face these challenges, students in schools with mostly male teachers, or located in rural areas, will be in a situation of greater vulnerability to be victims of the problems that arise as part of ICT risks in a digital society Research limitations/implications This article only offers a first approach to ICT and teachers’ perceptions. It is necessary to broaden the scope of this type of research to include different educational contexts and to ask questions that reveal in greater detail how schools are dealing with ICT and its possible risks and the factors that have influenced the successes or failures they are having in these attempts. Practical implications This finding can help schools to promote programs focused to apply ICT for student flourishment and help them to deal with the risk that digital technology is generating in young students. Originality/value Although multiple research have been conducted to address teachers’ perception about diverse topics, there has been no specific research on the self-perception of teachers in dealing with technology and preparing students for the problems presented by ICT and its risks. This research contributes to the literature on the impact that teachers’ perceptions can have on the adoption of technology in education, and how this can be different by gender and region.


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