This paper simulates the real household expenditure effects of electricity price increases in Zambia. First, we find that electricity subsidies are highly regressive. Second, our partial equilibrium model simulations of the welfare effects of electricity tariff rises show that poorer households suffer larger percentage losses in real expenditures compared to wealthier households. Naturally, this leads to increases in poverty. We find that removing electricity subsidies and transferring the realised fiscal savings to social cash transfers reduces extreme poverty significantly.
Female household headship is generally associated with higher poverty incidence relative to male headship. Female headship has generally been on the increase in South Africa. And while generally declining over the post-apartheid period, poverty has increased in the recent past. South Africa also has high unemployment rates. However, there is scant evidence on the role of employment in mediating the relationship between female headship and poverty in South Africa.
Over two decades sub-Saharan Africa has grown an average by 4.8% per annum. A trend called “Africa rising in the literature” but this robust economic growth seem to have benefited only a minority of elite individuals as poverty in the region remains high and income inequality continues to rise. Critics attribute this to a lack of financial inclusion.
Although the financial sector of Africa has witnessed massive reforms to enhance its ability to support economic activities, reduce poverty and lower income inequality, Africa remains the poorest region and the second most unequal region in the world after Latin America. Despite these established facts, little empirical research exists on the relationship between financial development and income inequality in Africa.
Recent empirical migration literature in South Africa suggests that access to physical and human capital, in the way of finance and education respectively, are key factors in increasing one’s probability of migrating. This paper attempts to extend this literature by directly measuring the extent to which social capital, broadly defined as one’s access to a migrant network, affects the probability of rural-to-urban migration.