Analysis of Agricultural Wages, Trade Income and Income Inequality in Rural Nigeria

Abstract

Apart from determining the sources of income
inequality, this study analyzes the extent
agricultural wages and trade income contributes
to income inequality in rural Nigeria. Findings
show high income inequality with a Gini
coefficient of 0.51. Also the sources of income
inequality were mostly trade and agricultural
incomes, with a share of income of 42.7% and
30.9% respectively in total inequality. The share
of income from wages and salaries in total
income was found to be 26.4%. Trade income
was found to be inequality-dampening, while
agriculture income is inequality-enhancing,
suggesting that trade income and agricultural
wages are major contributors of income
inequality in rural Nigeria.