PMMA-10224 Measurement and Sources of Income Inequality Among Rural and Urban Households in Nigeria
Income inequality is detrimental to economic growth and development. In Nigeria, several studies have shown that income inequality is increasing in the rural and urban areas, and this can be linked to the growing dimension of poverty. This study therefore attempts to estimate the level of income inequality using the data from National Integrated Households Survey collected by the Federal Office of Statistics (FOS) in 2003. The mean, standard deviation, and coefficient of variation will be used to describe the distribution of householdsincomes, while Gini-coefficient will be used to measure income inequality. Also, decomposition of income sources into agricultural, livestock, rental, transfer, and non-farm incomes will be done using the Coefficient of variation and Ginicoefficent. The socio-economic determinants of per capita income, which is a measure of welfare, will be derived through an Ordinary Least Square (OLS) regression. This approach will be used to decompose the effect of some socioeconomic variables on income inequality. The z-statistics and t-statistics will be used to test some stated hypotheses.