Income equality and household expenditure of fishers in the Volta Basin in Ghana

Abstract

Purpose The purpose of this paper is to examine the level of income inequality among fisher households in the four segments of the Volta Basin in Ghana and the determinants of small-scale fisher household welfare. Design/methodology/approach The paper investigates income inequality and the determinants of household consumption expenditure of fishers in the Volta Basin of Ghana using the Lorenz curve, Gini coefficient decomposition and the multiple linear regression technique. Findings The findings confirm the empirical evidence that households in the general downstream communities and their compatriots in the upstream communities were statistically different in terms of household characteristics and physical and social capital. Income inequality was highest among households in upstream communities but least amongst downstream communities. Livelihoods of the fishery households largely and strictly favored male households. Also, educational status was associated with higher levels of income which enormously help reduce food insecurity. Research limitations/implications The reliance on dummy variables might lead to omissions of revealed understated differences between households. Practical implications The study recommends that effort should be made to help increase fish production in the upstream communities. Furthermore, alternative sources of income should be introduced to households in the upstream so they do not become more disadvantaged by the construction of the dam. Originality/value The uniqueness of the paper is that it tries to estimate the impact of the construction of the dam on the Volta Basin by taking into consideration the effect of the construction of the dam on the upstream and downstream separately.