Rural non-farm income and inequality in Nigeria

Babatunde Omilola
ifpri discussion paper

This paper investigates the contribution of rural non-farm income to income inequality by examining the contribution of specific income sources (farm income from irrigated agriculture, farm income from rainfed agriculture and non-farm income) to income inequality in Nigeria. The results reveal the relative importance of specific income sources to income inequality and the various determinants of income inequality in rural Nigeria. Although non-farm income is distributed more unequally than incomes from the other two sources, it contributes least to overall income inequality. Farm income from irrigated agriculture represents the most important inequality-increasing source of income.