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The evolution of inequality in Mozambique 1996/97–2019/20

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  • Giulia Barletta
  • Maimuna Ibraimo
  • Vincenzo Salvucci
  • Enilde Sarmento
  • Finn Tarp

Abstract

After decades of war, Mozambique experienced sustained economic growth and poverty reduction from the mid-1990s. However, these positive dynamics started to revert from 2015. Meanwhile, inequality stagnated in the period 1996/97–2008/09, before markedly increasing afterwards. In this study, we analyse some of the most relevant indicators of inequality for Mozambique and their trends over the last 25 years. Using real per capita consumption as the main welfare aggregate, we look at various indicators of inequality, including the consumption distribution, percentiles and percentile ratios, growth incidence curves, Lorenz curves, and Gini indices. In addition, we discuss spatial inequality. Overall, we find that until 2014/15, consumption increased for the whole population, but it did so much more for richer households; conversely, in the last few years, consumption has reduced across the distribution, but the relative consumption-gap between better- and worse-off people has continued to increase.

Suggested Citation

  • Giulia Barletta & Maimuna Ibraimo & Vincenzo Salvucci & Enilde Sarmento & Finn Tarp, 2024. "The evolution of inequality in Mozambique 1996/97–2019/20," Development Southern Africa, Taylor & Francis Journals, vol. 41(6), pages 1179-1213, November.
  • Handle: RePEc:taf:deveza:v:41:y:2024:i:6:p:1179-1213
    DOI: 10.1080/0376835X.2024.2398545
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    1. Cornia, Giovanni Andrea (ed.), 2004. "Inequality, Growth, and Poverty in an Era of Liberalization and Globalization," OUP Catalogue, Oxford University Press, number 9780199271412.
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    3. Ferreira , Francisco H. G., 2010. "Distributions in motion: economic growth, inequality, and poverty dynamics," Policy Research Working Paper Series 5424, The World Bank.
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    5. Miguel Niño‐Zarazúa & Laurence Roope & Finn Tarp, 2017. "Global Inequality: Relatively Lower, Absolutely Higher," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 661-684, December.
    6. Robert Breunig & Omer Majeed, 2016. "Inequality or poverty: which is bad for growth?," CAMA Working Papers 2016-43, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    7. Mr. Jonathan David Ostry & Mr. Andrew Berg & Mr. Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 2014/002, International Monetary Fund.
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    Cited by:

    1. Salvucci, Vincenzo & Tarp, Finn, 2024. "Crises, prices, and poverty – An analysis based on the Mozambican household budget surveys 1996/97–2019/20," Food Policy, Elsevier, vol. 125(C).
    2. Moisés Siúta & Felix Mambo & Ivan Manhique & Muna Shifa & Bento Munkuka, 2024. "Social inequality in Mozambique," Working Paper 4c931ac0-7a36-4df4-a007-3, Agence française de développement.
    3. Vincenzo Salvucci & Finn Tarp, 2024. "Assessing the Impact of Covid-19 in Mozambique in 2020," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 803-840, August.

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