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Investigating growing inequality in Mozambique

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  • Carlos Gradín
  • Finn Tarp

Abstract

In this paper, we investigate the long-term trend of consumption inequality in Mozambique. We show that an imbalanced growth path disproportionally benefited the better-off and caused increasing inequality, especially in more recent years, curbing the necessary reduction in poverty. Using a regression decomposition technique, our results suggest that this trend was strongly associated with the higher attained education of household heads and with changes in the structure of the economy (with less workers in the public and subsistence sectors).

Suggested Citation

  • Carlos Gradín & Finn Tarp, 2017. "Investigating growing inequality in Mozambique," WIDER Working Paper Series wp-2017-208, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-208
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    References listed on IDEAS

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    1. Channing Arndt & Andres Garcia & Finn Tarp & James Thurlow, 2012. "Poverty Reduction and Economic Structure: Comparative Path Analysis for Mozambique and Vietnam," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(4), pages 742-763, December.
    2. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. Tony Addison & Ville Pikkarainen & Risto Rönkkö & Finn Tarp, 2017. "Development and poverty in sub-Saharan Africa," WIDER Working Paper Series wp-2017-169, World Institute for Development Economic Research (UNU-WIDER).
    5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    6. Channing Arndt & Sam Jones & Kristi Mahrt & Vincenzo Salvucci & Finn Tarp, 2016. "A review of consumption poverty estimation for Mozambique," WIDER Working Paper Series wp-2016-35, World Institute for Development Economic Research (UNU-WIDER).
    7. Channing Arndt & Sam Jones & Vincenzo Salvucci, 2015. "When do relative prices matter for measuring income inequality? The case of food prices in Mozambique," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 449-464, September.
    8. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    9. Channing Arndt & Kristi Mahrt, 2017. "Is inequality underestimated in Mozambique?: Accounting for underreported consumption," WIDER Working Paper Series wp-2017-153, World Institute for Development Economic Research (UNU-WIDER).
    10. Channing Arndt & Kristi Mahrt, 2017. "Is inequality underestimated in Mozambique? Accounting for underreported consumption," WIDER Working Paper Series 153, World Institute for Development Economic Research (UNU-WIDER).
    11. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    12. Channing Arndt & Sam Jones & Vincenzo Salvucci, 2015. "When do relative prices matter for measuring income inequality? The case of food prices in Mozambique," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 449-464, September.
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    Cited by:

    1. Atsushi Iimi, 2022. "Agriculture Production and Transport Connectivity: Evidence from Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 58(12), pages 2483-2502, December.
    2. Carlos Gradín & Félix Mambo & Yonesse Paris & Ricardo Santos, 2020. "Unequal expectations: Gender inequality in salary expectations of university students," WIDER Working Paper Series wp-2020-78, World Institute for Development Economic Research (UNU-WIDER).
    3. Carlos Gradín, 2020. "Quantifying the contribution of a subpopulation to inequality an application to Mozambique," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 391-419, September.
    4. Paulo Ivo Garrido, 2020. "Health, development, and institutional factors: The Mozambique case," WIDER Working Paper Series wp-2020-131, World Institute for Development Economic Research (UNU-WIDER).
    5. 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.
    6. Matt Andrews, 2022. "Getting Real about Unknowns in Complex Policy Work," CID Working Papers 406, Center for International Development at Harvard University.
    7. Baumert, Sophia & Fisher, Janet & Ryan, Casey & Woollen, Emily & Vollmer, Frank & Artur, Luis & Zorrilla-Miras, Pedro & Mahamane, Mansour, 2019. "Forgone opportunities of large-scale agricultural investment: A comparison of three models of soya production in Central Mozambique," World Development Perspectives, Elsevier, vol. 16(C).
    8. 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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