Deconstructing the Impact of Entrepreneurship on Income Inequality in Sub-Saharan Africa Countries

Deconstructing the Impact of Entrepreneurship on Income Inequality in Sub-Saharan Africa Countries

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The study examines the impacts of entrepreneurship on income inequality in a panel of 29 Sub-Saharan African countries spanning from 2004 to 2020.The paper employs a dynamic heterogeneous panel approach to differentiate between long-run and short-run impacts of entrepreneurship on income inequality.The findings establish a robust and direct nexus between entrepreneurial activities and income Rocker Panels/Guards/Rails disparity.The results of the two entrepreneurial indicators are stable.Besides, the coefficient of the Collections human capital is positive in the regression and statistically significant at a 5 percent significance level.

The proxies for macroeconomic factors exhibit diverse signs and impact, which suggest a policy stimulus aimed at refining macroeconomic situations and also ignite prospects for households to increase their incomes.