The evolution of inequality in Mozambique 1996/97–2019/20

Abstract

After decades of war, Mozambique experienced sustained economic growth and poverty reduction from the mid-1990s. However, these positive dynamics started to revert from 2015. Meanwhile, inequality stagnated in the period 1996/97–2008/09, before markedly increasing afterwards. In this study, we analyse some of the most relevant indicators of inequality for Mozambique and their trends over the last 25 years. Using real per capita consumption as the main welfare aggregate, we look at various indicators of inequality, including the consumption distribution, percentiles and percentile ratios, growth incidence curves, Lorenz curves, and Gini indices. In addition, we discuss spatial inequality. Overall, we find that until 2014/15, consumption increased for the whole population, but it did so much more for richer households; conversely, in the last few years, consumption has reduced across the distribution, but the relative consumption-gap between better- and worse-off people has continued to increase.