The Distribution of Consumption Expenditure in Sub-Saharan Africa: The Inequality Among All Africans

Abstract

Abstract This paper uses a set of national household surveys to study the regional Sub-Saharan Africa distribution of consumption expenditure among individuals during 1993–2008. The analysis puts the disparities in living standards that exist among all persons in Africa into context with the disparities that exist within and between African countries. We find some evidence that African interpersonal inequality has increased, but this depends on the measure of inequality. The Africa-wide Gini increased from 53% in 1993 to 56% in 2008 in the full sample, compared with an increase from 54% to 56% in the balanced sample of countries. In the full sample, this result is robust to alternative measures of inequality, while in the balanced sample, some bottom-sensitive measures show a decline. Disparities in living standards between countries have increased, while there has been no systematic increase in within-country inequality. For the Africa-wide distribution, the growth of consumption expenditure (from household surveys) has been low (between 0.9% and 1.6% per year depending on the sample). This growth has been uneven such that the richest 5% of Africans received around 40% of the total gains.