A new GLO Discussion Paper finds that inequality has indeed decreased and median consumption expenditure increased. At the same time, poverty incidence and severity increased precipitously.
GLO Discussion Paper No. 1183, 2022
Evolution of Inequality in Nigeria: A Tale of Falling Inequality, Rising Poverty and Regional Heterogeneity – Download PDF
by Odozi, John & Uwaifo Oyelere, Ruth
GLO Fellow Ruth Uwaifo Oyelere
Author Abstract: Recent research on Nigeria indicates declining income inequality. In contrast, anecdotal evidence suggests that only the upper class has benefited from economic growth in Nigeria overtime. The disconnect between these findings and anecdotal evidence, and the limitation in how inequality was estimated in the past literature are the motivation for our research. First we consider if inequality decreased in Nigeria between 2010 and 2018. We then examine how changes in inequality relate to changes in consumption and poverty. In addition, we examine whether there has been convergence in inequality and consumption across regions over this period? Leveraging data from the four waves of the Nigeria General Household Panel Survey (GHS) and carefully measuring inequality using consumption expenditure, our results suggest that inequality has decreased and median consumption expenditure increased. At the same time, poverty incidence and severity increased precipitously. Our findings suggest convergence in estimated inequality by regions but we do not find evidence of convergence across regions in consumption.
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PUBLISHED
Vol. 35, Issue 4, October 2022: Journal of Population Economics (JOPE): 15 articles https://link.springer.com/journal/148/volumes-and-issues/35-4
CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021). LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK
GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs – downloadable for free.
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