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