Income inequality, structural change, and inclusive economic growth

Bibliographic Data

ID21695072
AuthorsSuale Karimu (Sheffield Hallam University, corresponding author), Attahir Babaji Abubakar (0000-0002-5238-3694, University of the West of Scotland)
Year2025
Volume53
Issue3
Pages305-325
Publication date2025-07-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueOxford Development Studies (JOURNAL)
Journal identifiersISSN: 1360-0818 • E-ISSN: 1469-9966
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/13600818.2025.2507257
OpenAlexW4410570403
LanguageEN
Citations received2
References cited48

Sub-Saharan African countries have experienced significant structural change and economic growth in recent decades; however, inequality levels remain high, raising concerns that the growth is not inclusive enough to reduce inequality levels. This study explores the effect of economic growth and structural change on income inequality using a panel dataset of 40 sub-Saharan African countries over the period 2001–2015. The study employs the iterated Generalized Method of Moment (GMM) estimator for analysis. The findings suggest that although increased income levels in the region fuel inequality, the transition of the economies towards the services sector could reduce income inequality. However, the overall contribution of structural change to reducing inequality levels has been minimal suggesting that the growth experiences of the region, especially over the last two decades, may not have been inclusive; hence, the need for enhanced redistributive policies to deepen inclusivity of the growth process

Development economics · Economic geography · Economic growth · Economic inequality · Economic system · Economics · Inclusive growth · Income distribution · Income inequality metrics · Inequality · Macroeconomics · Poverty · Structural change · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality

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