Spatial inequality and household poverty in Ghana

The study analyses district-level consumption inequality in Ghana, explores the relative contribution of within- and between-district inequalities to national inequality and examines the relationship between household poverty and inequality. The last three rounds of the Ghana Living Standard Survey are used. We observe that the contribution of within-district inequality to national inequality is higher than inequality between districts. Also, district-level consumption inequality shows a significant effect on household poverty, but with varying signs. We surmise that the variation in signs is as a result of the state of economic activity and factors that affect both poverty and inequality.

► Inequality within districts contributes more to national inequality than inequality between districts. ► In the only region that inequality has fallen, more than 50% of the districts in the region experienced an increase. ► District-level inequality has significant effect on household poverty. ► Poverty reduction strategies should take into consideration inequality within districts.