Skip to Content

UNU-WIDER Entrepreneurship and Income Inequality in Southern Ethiopia

Support functions

A teenager wears torn rubber boots in a muddy local market in Bac Ha, Viet Nam. As of 2005 figures, half the world population—more than 3 billion people–is estimated to live on less than USD 2.50 a day. Bac Ha, Viet Nam. UN Photo/Kibae Park.

Table of contents

Entrepreneurship and Income Inequality in Southern Ethiopia

This paper uses inequality decomposition techniques in order to analyse the consequences of entrepreneurial activities to household income inequality in southern Ethiopia. A uniform increase in entrepreneurial income reduces per capita household income inequality. This implies that encouraging rural entrepreneurship may be favourable for both income growth and income distribution. Such policies could be particularly successful if directed at the low-income, low-wealth, and relatively uneducated segments of the society.
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2009/05
Title:
Entrepreneurship and Income Inequality in Southern Ethiopia
Authors:
Ayal Kimhi
Publication date:
February 2009
ISSN Web:
1810-2611
ISBN 13 Web:
9789292301743
Copyright holder:
© UNU-WIDER
Copyright year:
2009
Keywords:
entrepreneurship, income inequality, redistribution, Ethiopia, Africa
JEL:
L26, M13, O15, O55
Project:
Promoting Entrepreneurial Capacity
Sponsor:
UNU-WIDER gratefully acknowledges the financial contribution to the project by the Finnish Ministry for Foreign Affairs, and the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online

^ Back to top