Advertisement

Social Indicators Research

, Volume 141, Issue 2, pp 539–549 | Cite as

Poverty Impact of Variations in Within-group and Between-group Inequality in Nigeria: New Estimates Using Two Household Survey Data

  • Jude Okechukwu ChukwuEmail author
Article
  • 98 Downloads

Abstract

In an unequal and fragile economy such as Nigeria, providing for the extreme poor, marginalized, disadvantaged, less privileged and vulnerable is still seen by elites as providing for the unproductive segment. This notion seems to be one of the reasons why the elites in government have not done much to scale down poverty and inequality. The study estimates the poverty impact of variations in within-group and between-group inequality using two sequential household survey data, the harmonized national living standard survey, 2010 and the national living standard survey, 2004. Specifically, the study explains the spatial and sectoral variations in estimates of the marginal poverty impact and elasticity with respect to within-group and between-group inequality. The main findings are; first, that within-group inequality and between-group inequality estimates are sensitive to the choice of Foster–Greer–Thorbecke (FGT) poverty measure, and might as well be sensitive to the choice of poverty line; second, that non-homogeneity is due to variations in the initial sub-group distributions; finally, that altering within-group inequality will have more important impact on poverty reduction than altering between-group inequality.

Keywords

Poverty Inequality Economic welfare Nigeria 

JEL Classification

D12 D60 D63 I32 

Notes

Acknowledgements

The author is grateful to participants at the 14th International Conference on “Africa and Africans in National, Regional and Global Dimensions” organized by Russian Academy of Sciences held in Moscow, Russia from 17th–20th October 2017 for valuable comments. Also, participants of the 28th July 2016 Seminar organized by Federal University Lokoja, Nigeria are commended for their suggestions. More commendation goes to participants at the 28th July 2014 Seminar organized by International Policy Centre for Inclusive Growth (IPC-IG) in Brasilia, Brazil for valuable comments and suggestions. The author is highly indebted to two anonymous expert reviewers. All errors remain entirely those of the author.

References

  1. Alesina, A., & Perotti, R. (1996). Income distribution, political instability, and investment. European Economic Review, 40, 1203–1228.CrossRefGoogle Scholar
  2. Araar, A. (2012). Expected poverty changes with economic growth and redistribution, CIRPEE, Cahier de Recherche working paper 12–22.Google Scholar
  3. Araar, A., & Awoyemi, T. T. (2006a). Poverty and inequality nexus: Illustrations with Nigerian data, CIRPEE Cahier de Recherche, working paper 0638.Google Scholar
  4. Araar, A., & Awoyemi, T. T. (2006b). Poverty and inequality nexus: Illustrations with Nigerian data, Economics Bulletin, 28(15).Google Scholar
  5. Araar, A., & Duclos, J. -Y. (2007a) Poverty and inequality components: A micro framework, Cahier de Recherche/working paper 07–35. CIRPEE.Google Scholar
  6. Araar, A., & Duclos, J. -Y. (2007b). DASP: Distributive analysis STATA package. PEP, World Bank, UNDP and Université Laval.Google Scholar
  7. Araar, A., & Duclos, J.-Y. (2010). Poverty and inequality components: A micro framework. Journal of African Economies, 19(3), 357–398.CrossRefGoogle Scholar
  8. Araar, A., & Duclos, J. -Y. (2013). Distributed analysis STATA package version 2.2, Universite Laval, PEP, CIRPEE and World Bank.Google Scholar
  9. Armstrong, P., & Burger, C. (2009). Poverty, inequality and the role of social grants: An analysis using decomposition techniques, Stellenbosch Economic Working Paper 15/09.Google Scholar
  10. Auvinen, J., & Nafziger, E. W. (1999). The sources of humanitarian emergencies. Journal of Conflict Resolution, 43(3), 267–290.CrossRefGoogle Scholar
  11. Brinkman, H., Attree, L., & Hezir, S. (2013). Addressing horizontal inequalities as drivers of conflict in the post-2015 development agenda. London: UN Peace Building Support Office and Safer World.Google Scholar
  12. Brush, S. G. (1996). Dynamics of theory change in the social sciences: Relative deprivation and collective violence. Journal of Conflict Resolution, 40(4), 523–545.CrossRefGoogle Scholar
  13. Cederman, L. A., Gledditsch, K. S., & Weidmann, N. B. (2010). Horizontal inequalities and ethnonationalist civil war: A global comparison. Paper prepared for presentation at Yale University April 2010.Google Scholar
  14. Chongvilaivan, A., & Kim, J. (2016). Individual income inequality and its drivers in Indonesia: A theil decomposition reassessment. Social Indicators Research, 126(1), 79–98.CrossRefGoogle Scholar
  15. Chukwu, J. O. (2017). Estimating inequality semi-elasticity of poverty reduction in Nigeria. Social Indicators Research, 131(3), 1087–1101.  https://doi.org/10.1007/s11205-016-1298-1.CrossRefGoogle Scholar
  16. Collier, P., & Hoeffler, A. (2004). Greed and grievance in civil war. Oxford Economic Papers, 56(4), 563–595.CrossRefGoogle Scholar
  17. Džuverovic, N. (2013). Does more (or less) lead to violence? Application of the relative deprivation hypothesis on economic inequality-induced conflicts. CIRR, 19(68), 115–132.Google Scholar
  18. Epoh, B. N., & Baye, F. M. (2012) Decomposing poverty-inequality by non-income sources in Cameroon. In Paper presented at the CSAE 2010 Conference on African Economies at Saint Catherine’s College, 18–21 March, University of Oxford, UK.Google Scholar
  19. Foster, J., Greer, J., & Thorbecke, E. (1984). A class of decomposable poverty measures. Econometrica, 52, 761–766.CrossRefGoogle Scholar
  20. Gurr, T. (1970). Why men rebel. Princeton, NJ: Princeton University Press.Google Scholar
  21. Hammill, M. (2007). Growth, poverty and inequality in Central America. In CEPAL Serie Estudios y Perspectivas, No. 88, Sede Subregional de La CEPAL en Mexico. Mexico D.F: Naciones Unidas, Social Development Unit.Google Scholar
  22. HNLSS. (2010). National Bureau of Statistics, Abuja.Google Scholar
  23. Kanbur, R. (2016). Intra-household inequality and overall inequality, working paper -11, Charles H. Dyson School of Applied Economics & Management, Cornell University, Ithaca, New York 14853-7801, USA.Google Scholar
  24. Lise, J., & Seitz, S. (2011). Consumption inequality and intra-household allocations. The Review of Economic Studies, 78(1), 328–355.CrossRefGoogle Scholar
  25. MacCulloch, R. (2005). Income inequality and the taste for revolution. Journal of Law and Economics, 48(1), 93–123.CrossRefGoogle Scholar
  26. Mussa, R. (2014). Household expenditure components and the poverty and inequality relationship in Malawi. African Development Review, 26(1), 138–147.Google Scholar
  27. Nafziger, E. W., & Auvinen, J. (2002). Economic development, inequality, war, and state violence. World Development, 30(2), 153–163.CrossRefGoogle Scholar
  28. NBS. (2005). Nigeria Poverty Profile, National Bureau of Statistics, Abuja.Google Scholar
  29. NBS. (2012). Nigeria Poverty Profile, National Bureau of Statistics, Abuja.Google Scholar
  30. NLSS. (2004). National Bureau of Statistics, Abuja.Google Scholar
  31. Østby, G. (2003). Horizontal inequalities and civil war: Do ethnic group inequalities influence the risk of domestic armed conflict? Cand. Polit. Thesis. Trondheim: Department of Sociology and Political Science, Norwegian University of Science and Technology.Google Scholar
  32. Østby, G. (2008). Inequalities, the political environment and civil conflict: Evidence from 55 developing countries. In F. Stewart (Ed.), Horizontal inequalities and conflict: understanding group violence in multiethnic societies (pp. 136–159). Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  33. Platt, L. (2011). Inequality within ethnic groups. The Joseph Rowntree Foundation (JRF) Commissioned Programme Paper on Poverty and Ethnicity, United Kingdom.Google Scholar
  34. Sigelman, L., & Simpson, M. (1977). A cross-national test of the linkage between economic inequality and political violence. Journal of Conflict Resolution, 21(1), 105–128.CrossRefGoogle Scholar
  35. Stewart, Frances. (2000). Horizontal inequalities as cause of conflict: A review of CRISE findings. Oxford: Centre for Research on Inequality, Human Security and Ethnicity (CRISE), Oxford University.Google Scholar
  36. Stewart, F., & Brown, G. K. (2007). Motivations for conflict: Groups and individuals. In C. A. Crocker, F. O. Hampson, & P. R. Aall (Eds.), Leashing the dogs of war: Conflict management in a divided world. Washington DC: United States Institute of Peace Press.Google Scholar

Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of NigeriaNsukkaNigeria

Personalised recommendations