Understanding Ghana's Expenditure Inequality

In light of new data, this paper uses regression and descriptive approaches to examine Ghana's expenditure inequality from 1991 to 2017. Using household expenditure and several measures for the period under study, the paper observes that the inequality contiues to increase at the national level, mirroring similar trend at the sub-national level. Some administrative regions recorded over 30 percent increase in inequality. The regression-based approach reveals that household and community level characteristics contribute immensely to inequality. Household size, post secondary education, rural location and access to financial institutions are important contributors to the rising phenomenon of inequality. As the deadline of the Sustainable Development Goal approaches, this paper provides insights for policy action to attain the goal of reducing inequality especially in the Ghanaian context.

Automated summary

This paper examines expenditure inequality in Ghana and finds that it has been increasing at both the national and sub-national levels. Household and community characteristics play a significant role in this inequality.