International Conference on Economics, Finance & Business, Prague

SOCIAL CAPITAL AND ECONOMIC INEQUALITY AMONG POOR AND VULNERABLE HOUSEHOLDS IN GOMBE STATE, NIGERIA

ABDULLAHI BUBA

Abstract:

Nigeria experiences significant income and wealth inequality, with the richest 10% of the country’s total population controlling a disproportionate share of the country’s wealth. This wide disparity is reflected in the Gini coefficient, which measures inequality, and show a significant gap between the rich and the poor and vulnerable. Furthermore, gender inequality and regional disparities contribute to the overall inequality landscape. While Gombe State is considered relatively stable compared to other states in the north-east sub region of the country, one of the significant challenges it faces is inequality. The problem of inequality in Gombe State in particular and the country in general is a multifaceted issue that encompasses poverty, gender disparities, limited economic opportunities, and access to basic necessities of life. In order to tackle the menace of inequality in Nigeria, a holistic approach is needed which focus on both immediate needs and long-term solutions. This includes program like implementing progressive income tax, investing in developmental projects (education, health care, job creation, infrastructure, etc), supporting small businesses and farmers, reforming land policies to ensure equitable access and opportunity, and supporting social capital (individual networks and connections) which can help reduce disparities in various areas of life. This study therefore, will be underpins to: i. Measure degree of inequality among poor and vulnerable households in Gombe State. ii. Examine how much inequality is due to differences across gender. iii. Determine the effect of social capital on inequality among poor and vulnerable in Gombe State. The paper will used data from Gombe State National Single Register of Poor and Vulnerable Households Survey released as 2020 Public Work Fares (PWF) dataset. The dataset consists of over 14,000 poor and vulnerable households drawn across the 3 Senatorial Districts in the State and a cluster sampling strategy was used in collecting the data. The study will construct index of social capital and economic inequality using composite indicators. Subsequently, it employs generalized entropy index to achieve the first-two objectives of the study and a discrete choice logistic regression model to achieve its primary objectives. Findings from the study will form part of crucial policy documents for measuring performance of Gombe State Government in particular and Nigeria in general towards attainment of Sustainable Development Goals (SDGs) in the country with particular emphasis on reducing inequality in Nigeria; serve as a road map toward realization of Gombe State 10–Year Development Plan; provide a refence document to think-tanks among researchers and institutions of learning in the State and the country at large; and contribute to the body of knowledge by providing a paradigm shift in debate and public discuss on inequality in the study area.

Keywords: Inequality, Social Capital, Vulnerability, Sustainable Development Goals