Determinant and status of income disparity among urban households

Abstract

The policy message for the developing world was clear: you can’t expect to have both lower poverty and less inequality while you remain poor, and if you choose to give poverty reduction highest priority then focus on growth. Ethiopia’s experience is a case in point for the complex interaction between inequality and growth. Structural transformation and poverty reduction may require the implementation of reforms that could lead to an increase in income disparities in addition to the growth of economy. Urban inequality has been given less attention on research and development agenda of Ethiopia particularly for medium towns like zone and district town of North Shewa Zone. In Ethiopia, annual urban population growth rate is estimated to be above 4.3 %. In line with this income inequality in urban areas income inequality is growing up and the incidence of urban poverty in developing country like Ethiopia is very high. Thus, the present study aims to identify the determinant and status of income inequality among urban households of North Shewa Zone Oromia National regional state by using Gini index and multiple regression models on the data collected from 400 respondents.