Tuesday, September 8, 2009

Entrepreneurship and Income Inequality in Southern Ethiopia

By Kimhi, Ayal

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.

Keywords: entrepreneurship, income inequality, redistribution, Ethiopia, Africa

URL: http://d.repec.org/n?u=RePEc:unu:wpaper:rp2009-05&r=dev