Inequality In Africa Research Articles

Human capital and income inequality in Africa: robust governance synergies and thresholds

Human capital and income inequality in Africa: robust governance synergies and thresholds

The role of the internet in moderating the effect of industrialization on income inequality in Africa

ABSTRACT While the internet-income inequality nexus and the industrialization-income inequality relationship have been separately investigated, this present study looks at the moderating role of internet penetration in the relationship between industrialization and income inequality. The focus of the study is on a panel of 44 African countries over the period 2000–2020. The empirical evidence is based on the fully modified ordinary least squares (FMOLS) estimation technique. The results show that while internet penetration has a negative and significant impact on income inequality, industrialization has a positive and significant impact on income inequality. Moreover, the interaction between industrialization and internet penetration exerts a positive and significant impact on income inequality. Policy implications are provided based on the findings of this study.

More landless, more problems: Investigating the relationship between land and income inequality in Africa

Background: In pursuit of greater equality, African nations have implemented land reforms to increase land ownership among indigenous citizens. Despite these efforts, Africa remains one of the world’s most unequal regions.Aim: In line with the sustainable developmental goals (SDGs) 10 of the Equal World campaign, the study investigates how land ownership influences income inequality in African countries. We create a unique time series measuring landholders per square kilometre of agricultural land and explore its relationship with income inequality.Setting: The analysis covered the period of 2000–2020, using data from the World Bank gender data portal and World Bank Development Indicators to compute the land inequality index.Method: Conventional cointegration and advanced wavelet coherence techniques are employed to examine the influence of land ownership on inequality.Results: Traditional estimators reveal a long-run positive relationship between land ownership and income inequality, with bi-directional causality, implying that African countries with higher (lower) land concentration are associated with higher (lower) levels of inequality. However, wavelet coherence analysis reveals that only 8 countries exhibit a positive relationship, while 16 show a negative relationship, and 2 show an insignificant relationship. Notably, most countries with a negative (positive) relationship (did not) implement additional land reforms after 2000.Conclusion: We conclude that countries that fail to undergo continuous adjustments in land reforms risk experiencing a higher concentration of land ownership and income inequality. This study’s findings underscore the importance of land policy updates for long-term equity.Contribution: Unlike previous studies using the Gini Land coefficient, this study measure agricultural landowners per square kilometre, capturing the entire population and its relationship with income inequality.

An Investigation of Sectoral Growth’s Impact on Income Inequality in Africa

An Investigation of Sectoral Growth’s Impact on Income Inequality in Africa

Inequality in Africa: Does injustice matter?

AbstractThe following study aims to investigate the impact of injustice on income inequality in Africa between 2000 and 2020. Both male and female injustice levels are evaluated using gender‐specific scores to indicate the injustice suffered by both genders. The study utilized the Gini and Palma ratios as proxies for income distribution inequality. After addressing error term‐related problems with the Newey‐West Standard Corrected Error approach, the findings indicate that injustice is a significant contributor to inequality in Africa, especially for females, with little evidence of male injustice. The results are consistent for both middle and low‐income countries that adopted the French civil law and English common law systems to govern their institutions. Additionally, the study found that educational development and basic welfare maintenance contribute to reducing inequality in Africa, which is exacerbated by many barriers to political inclusion. To address the gender bias in income distribution, policymakers in Africa should design policies that provide equal access to justice for both male and female populations. The study also suggests adopting policies that enhance human capital accumulation and political inclusion in‐state activities to create a safe, just, and equal environment.

:Religion and Inequality in Africa

:<i>Religion and Inequality in Africa</i>

Bibliometric analysis of income inequality in Africa

Bibliometric analysis of income inequality in Africa

Foreign bank presence and income inequality in Africa: What role does economic freedom play?

This study contributes to income equality (IE) literature by examining four important issues. First, the study examines the effects of foreign bank presence (FBP) on IE. Second, the paper identifies the minimum threshold level of FBP which can lead to IE. Third, the effect of economic freedom on IE was investigated. Fourth, the paper determines whether economic freedom interacts with FBP to minimise IE. The findings are based on macro data for 33 African countries from 1995 to 2020. The findings from the two-stage system generalised method of moment indicate that unconditionally, FBP reduces income inequality. Also, results from the threshold effect reveal that whilst FBP reduces income inequality, if it exceeds 52%, it may contribute to it. Additionally, the study reveals that economic freedom dampens IIE. Furthermore, economic freedom conditions FBP to reduce IE. Based on these findings, policymakers are advised to exercise caution in attracting foreign banks and to promote local financial institutions. Policymakers are also advised to implement policies to promote economic freedom.

Towards Efforts to Equalize Income in Africa: The Role of Tourism Development

ABSTRACT A vast literature has investigated the nexus between tourism and income inequality in developing and developed countries. Unfortunately, the literature on the impact of tourism on income inequality in Africa is sparse. Hence, this study examines the influence of tourism on income inequality in 30 African countries over the period 1996–2020. In addition to international tourism arrivals and international tourism receipts which have been widely used by previous studies, this study uses a plethora of tourism indicators, namely business tourism spending, leisure tourism spending, internal travel and tourism consumption, domestic tourism spending, and visitor exports. Moreover, unlike previous studies that have extensively used the Gini index with its inadequacy as a measurement of income inequality; this study uses the Atkinson index and Palma ratio to capture extreme points of the inequality distribution. The empirical evidence is based on the panel-corrected standard error (PCSE) estimation technique. The results reveal that tourism contributes to the equalization of income in Africa, contingent on the type of tourism. Policy implications are discussed.

Examining the income gap-gender inequality nexus in Africa using bi-wavelet and partial wavelet coherence analysis

The eradication of gender discrimination traditions and the reduction of income disparities are vital global objectives outlined in Sustainable Development Goals 4 and 10, particularly in African nations where gender and income gaps persist. In alignment with these goals, this study employs wavelet techniques to investigate the relationship between income inequality and gender equality in 31 selected African countries, utilizing available data spanning from 1998 to 2020. Analysis of the co-movement between gender equality and income gap reveals that gender equality plays a crucial role in narrowing the income disparity in African countries. Expanding the analysis to control for the impact of economic growth through the implementation of partial wavelet tools, does not change these results. Further dissemination of our findings reveals that improved gender equality has a more pronounced impact on reducing income inequality in anglophone nations compared to their francophone counterparts, given variations in legal frameworks and religious practices. This emphasizes the importance of gender-sensitive policies in effectively addressing income inequality in Africa and suggests that policymakers should tailor country-specific policies to account for differences in gender laws, cultures, and religious beliefs. Overall, our study presents novel evidence linking income and gender inequality in Africa at country level.

Foreign aid, institutional quality, and income inequality in Africa: A dynamic panel threshold approach

This study examines the impact of foreign aid and institutions on income inequality in 23 African countries during the period from 2005 to 2017. The study used a newly proposed novel dynamic panel threshold technique. The results of the study found an institutional quality threshold value of 1.622. Below the threshold, foreign aid was found to positively and significantly influence income inequality. However, above the threshold, the coefficient of foreign aid was negative with statistical significance. This implies that foreign aid tends to diminish income inequality in the presence of quality institutions. The study also used the quantile regression method to check for robustness. It showed that the conclusion between aid and inequality is the same in most of the quantiles (0.1 and 0.2). The findings can be worthwhile for sketching proper aid policies to lessen inequality. Policymakers in Africa should prioritize establishing high-quality institutions and developing measures to improve existing ones. Thus, aid could potentially reduce income inequality. This study suggests that it is important to note that aid programs can be effective when tailored to the particular needs and circumstances of each beneficiary country, as one-size-fits-all methods may not produce the anticipated outcomes.

Factors influencing inequality in government health expenditures within African regional economic communities

BackgroundThe unequal distribution of government health spending within African regional economic groupings is a significant barrier to achieving Universal Health Coverage and reaching health-related Sustainable Development targets. It also hampers the progress toward achieving the African Union’s vision of an integrated and prosperous Africa, free of its heavy disease burden. Based on panel data from 36 countries nested into eight Regional Economic Communities (RECs), this study probes the effects of countries' macro-level factors on government health expenditure disparities within eight regional economic communities from 2000 to 2019.MethodWe use the multilevel linear mixed-effect method to show whether countries' trade gains, life expectancy at birth, poverty, urbanization, information and communication technology, and population aging worsen or reduce the differences for two government health expenditure indicators.ResultsThe insignificant effect of GDP per capita suggests that in most regional economic groupings, the health sector is still not considered a high-priority sector regarding overall government expenditures. Countries' poverty levels and urbanization increase the domestic general government health expenditure disparities as a percentage of general government expenditure within the regional groupings. However, trade gains and ICT diffusion reduce these disparities. Furthermore, the results reveal that external health expenditure per capita and life expectancy at birth positively impact within-regional inequalities in the domestic general government health expenditure per capita. In contrast, GDP per capita and trade gains tend to reduce them.ConclusionsThis study enriches the research on the determinants of government health expenditure inequality in Africa. Policies that can spur growth in trade and ICT access should be encouraged. Countries should also make more efforts to reduce poverty. Governments should also develop policies promoting economic growth and planned urbanization.

The intersectional impact of climate change and gender inequalities in Africa

AbstractThe global pursuit of the United Nations Sustainable Development Goals underscores the importance of combating inequality, with climate change emerging as a significant threat, especially in low‐ and middle‐income countries (LMICs). This commentary explores the profound impact of climate change on the lives of women in Africa, shedding light on a critical issue where 80% of the female population in LMICs grapples with its far‐reaching consequences. Climate change is exacerbating existing gender disparities, particularly within the realms of agriculture, livelihoods, and resource access. Barriers like limited training and technology access hinder effective adaptation, perpetuating discrimination. Rooted deeply in social and cultural norms, the consequences of climate change negatively impact the human rights of women, resulting in increased vulnerability to illnesses, malnutrition, limited housing, and restricted support services. Health risks, including malaria transmission and respiratory diseases, further compound existing challenges, leading to increased rates of anemia, violence against women, alarming spikes in child marriages, and socio‐economic consequences. Integrated policies emphasizing gender mainstreaming, multisectoral approaches, and closing gender gaps in asset ownership are crucial to addressing these challenges. Education, training, and upskilling opportunities are essential to empowering women to confront climate change, further advocating for the development and enforcement of laws and policies recognizing gender differences and safeguarding women's rights. Moreover, there is a need for integrated solutions to foster sustainable development in Africa, as climate change is not a standalone issue but rather intertwines with various aspects of life. By advocating for policies that promote gender equality, education, and resource access, it seeks to pave the way for a more resilient and empowered female population, capable of navigating the complexities of climate change and contributing to the broader goal of sustainable development on the African continent.

Impact of malnutrition on education inequality in Africa: A partial wavelet coherence analysis

Impact of malnutrition on education inequality in Africa: A partial wavelet coherence analysis

Towards Achieving the Sustainable Development Goals (SDGs): The Impact of Debts on Income Inequality in Africa

The Agenda for Sustainable Development provides a framework for the creation of a better and sustainable future for all. The Sustainable Development Goals (SDGs) focus on addressing global challenges, including income inequality. Among others, the SDGs also commit countries to work towards reducing income inequality and as such, lowering income inequality is one of the key issues in Africa. However, given the high levels of debt on the continent, reducing income inequality could be a challenge. Majority of the literature examines the link between debts and economic growth with little attention paid to the impact of debts on income inequality. Moreover, not much is known on whether the relationship between debt and income inequality is non–linear. This study therefore contributes to the existing research efforts by investigating the threshold effects of debts using data from 24 African countries by relying on the sample splitting and threshold estimation approach. The results reveal that, while debts generally dampen income inequality, unbridled debt accumulation above the estimated thresholds does not decrease income inequality, indicating that the income inequality–reducing impact holds at lower levels of debt–to–GDP ratio. This evidence is insensitive to different indicators of income inequality and debts. Findings from this study show how increasing indebtedness contributes to widening income inequality in Africa.

Does Innovation Drive Up Income Inequality in Africa?

Does Innovation Drive Up Income Inequality in Africa?

Horizontal Inequalities in Africa

We estimate horizontal inequality across the African continent over time based on four identity cleavages—location, ethnicity, gender, and religion—and four well‐being indicators—education, asset ownership, child nutrition, and under‐five survival. Improvements in social indicators over the last 25 years appear to be equalizing, with a decline in most horizontal inequalities. However, most countries in Africa show higher levels of horizontal inequalities than countries in Asia or Latin America. Spatial inequalities remain particularly high in Africa, but there is also high variation in levels and trends of horizontal inequalities across the African continent. For example, education inequality across identity cleavages seems to be particularly high in West African countries, whereas ethnic inequality across well‐being indicators seems to be particularly high in Southern African countries. Various African countries have even witnessed a recent increase in specific horizontal inequalities. Our results support policymakers in identifying the most severe and deteriorating forms of horizontal inequality in their countries.

A Pentecostal theology of radical sharing: Sam‐Ae and ubuntu as critical hermeneutics of engaged love

AbstractThe article argues that although Pentecostal churches in Africa have the potential to challenge and transform the reality of inequalities in Africa, instead, they are reproducing and perpetuating these inequalities by creating an inequality gap among themselves, especially, between the pastors and their fellow congregants. A closer look at some of these churches reveals that some of them are propagating social, political, and economic inequalities demonstrated in the gap that exists between the pastors and their ordinary members. In response, we construct a Pentecostal theology of radical sharing to argue for a balanced distribution of wealth between the rich and the poor to deal with the challenges of inequalities. It demonstrates that indigenous idioms such as sam‐ae (Korea) and ubuntu (Africa) are critical hermeneutics from the margins for interpretative translation/contextualization of the Christian faith into a theology of radical sharing in the fight against inequalities within African Indigenous Pentecostalism.

Education and Social Inequality in Africa: Gender, Poverty, and Regional Disparities

Education and Social Inequality in Africa: Gender, Poverty, and Regional Disparities

Reconfiguring African Studies, reconfiguring economics: centring intersectionality and social stratification

African and African diaspora scholars have made key contributions to contemporary understandings of inequality, intersectionality, institutions and ‘development'. A recent major contribution to this debate is offered by Franklin Obeng-Odoom’s Property, Institutions and Social Stratification in Africa (Cambridge University Press, 2020). Drawing on a wide range of literatures, but especially from traditions of Black radical economic thought that span the United States, the Caribbean and Africa, the book calls for intersectional perspectives to be brought to bear on classical institutionalist and stratification economics traditions, in order to rethink ‘development economics’ as we know it. Obeng-Odoom utilises these traditions to make sense of persistent and increasing intra- and inter-group inequalities in Africa and between Africa and the world, showing how classed, raced and gendered identities shape diverse political and economic experiences, including the access to property or employment opportunities. At the same time, Black wo*men economists and wo*men economists of Colour have made notable contributions to the themes addressed by Obeng-Odoom's book – an archive that deserves deep attention. Gathering a collective of feminist economists from and beyond Africa (Abena D. Oduro, Tanita J. Lewis, Lebohang Liepollo Pheko, Sara Stevano, Ingrid Kvangraven), this symposium paper develops a conversation around the themes of intersectionality and social stratification in Africa.