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Volume 2 Number 3 March 2020
ASSESSMENT OF INCOME INEQUALITY AMONG FARMING HOUSEHOLDS IN EGBA DIVISION, OGUN STATE, NIGERIA
Pages: 16-24Authors: Akerele E. O*, Ambali O. I, Oluwasanya O. P
Abstract
This study attempts analysis of Income Inequality among Rural and Urban Households in Egba Division of Ogun State, Nigeria: The two Local Government Areas were purposively selected namely: Abeokuta South Local Government Area and Obafemi Owode Local Government Area Representing rural and urban households respectively. This study identifies the various income generating activities in both areas to determine the source of income inequality among these rural and urban households. A total number of 104 respondents were assessed, 50 from rural and 54 from urban. The socio-economic characteristics of both households contribution of each income source to the house income, level of income inequality within each household area and between the both household as well as the contribution of each source overall source income inequality in both area were analyzed The socio-economic characteristics of both households were determined using simple percentage method while the contribution of each income source to household income was determined using simple technique method. The Lorenz Curve and Gini coefficient were used to determine the level of income inequality among both areas while the assessment of the contribution of each income source to the income inequality was done using correlation analysis and decomposition based on co-efficient of variation. From findings individual start work earning money income early in rural area and they continue to work even they have passed retirement age of 65 years. Urban dwellers have higher education qualification than rural counterpart and such a higher percentage of rural dweller are self employed while a higher of urban dweller have paid employment that is white collar job. On the overall, urban dweller earn higher than rural dweller, with crop production, non- farming activities and transfer payment affect overall house household income in both areas. However, crop production is the major source of household income in the rural area while non-farming activities contribute majorly to household income in the urban.
