Which Inequality Matters? Growth Evidence Based on Small Area Welfare Estimates in Uganda

24 Pages Posted: 24 Jun 2005

Multiple version iconThere are 2 versions of this paper

Date Written: May 2005

Abstract

Existing empirical studies on the relation between inequality and growth have been criticized for their focus on income inequality and their use of cross-country data sets. This paper uses two sets of small area welfare estimates - often referred to as poverty maps - to estimate a model of rural per capita expenditure growth for Uganda between 1992 and 1999. We estimate the growth effects of expenditure and education inequality while controlling for other factors such as initial levels of expenditure and human capital, family characteristics and unobserved spatial heterogeneity. We correct standard errors to reflect the uncertainty due to the fact that we use estimates rather than observations. We find that per capita expenditure growth in rural Uganda is affected positively by the level of education as well as by the degree of education inequality. Expenditure inequality does not have a significant impact on growth.

Suggested Citation

Schipper, Youdi and Hoogeveen, Johannes G. M. (Hans), Which Inequality Matters? Growth Evidence Based on Small Area Welfare Estimates in Uganda (May 2005). World Bank Policy Research Working Paper No. 3592. Available at SSRN: https://ssrn.com/abstract=748284

Youdi Schipper (Contact Author)

Twaweza ( email )

127 Mafinga Road
P.O. Box 38342
Dar es Salaam
Tanzania

Johannes G. M. (Hans) Hoogeveen

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
70
Abstract Views
571
rank
312,677
PlumX Metrics