Entrepreneurship and Income Inequality in Southern Ethiopia
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This paper uses inequality decomposition techniques in order to analyze the
consequences of entrepreneurial activities to household income inequality in
Southern Ethiopia. A uniform increase in entrepreneurial income reduces per capita
household income inequality. This implies that encouraging rural
entrepreneurship may be favorable for both income growth and income
distribution. Such policies could be particularly successful if directed at the low-income,
low-wealth, and relatively uneducated segments of the society.