Income Distribution and Inequality: gender, labour market status and macro-economic policy

Abstract

This paper examines the impacts of gender and labour market status on income distribution and inequality. This is against the background of the macroeconomic policy instruments deployed since 1982 in Nigeria. The study is based on data from a sample survey of 473 households (with 2,412 members) drawn from the urban, semi-urban, and rural areas in southwestern Nigeria. The study shows a complex relationship between the key variables. The relationship between gender and the size distribu­ tion of personal or per capita household income is statistically signifi­ cant. However, among heads of household, the relationship is not significant. Income inequality is more pronounced amongfemale-headed households. Labour market status also yields a complex picture. The relationship between labour market status and the size distribution of income (personal and per capita income) is significant. Households whose heads are in wage employment are worse off than those with heads in self-employment. When gender is loaded, labour market status remains statistically significant for the size distribution of income. Income inequality has worsened under adjustment; but at a much deeper rate than some other studies suggest. Urban inequality is deeper than is gen­ erally acknowledged, and those in wage employment are particularly hard hit, while owners of capital have done quite well. Finally, while vul­nerability among women in low pay has increased, the income inequality is as much a function of class as it is of gender.