Examining the Level of Polarization in Nigeria: A Der Decomposition Approach

Abstract

Despite various studies on income inequality measures in Nigeria, studies on the patterns of income distribution such as the disappearance of the middle class and clustering of population groups at intervals i.e. polarization are limited. This study therefore examines the level of polarization in Nigeria along socioeconomic context using a DER decomposition approach. The study uses Harmonized Nigeria Living Standard Survey (HNLSS) 2009/2010 which was collected by National Bureau of Statistics. The DER analysis method was chosen because it does not assume a specific number of income groups or poles. The result of the DER analysis reveals the rural sector to be more polarized than the urban sector. Also, the Northern zones have a high level of polarization than the southern zones implying a high tendency for social conflicts outbreak. Decomposing the population based on gender shows that the male group contribute more (0.878) to polarization than the female (0.004) with a greater proportion of poor people amongst the male category. In addition a high proportion of poor people as shown by the deficit to surplus ratio were found amongst the rural sector (38.53), Northwest zone (54.40) and the non-educated members of the society (45.17). Therefore the need for educating and forming favorable polices towards the poor people in the society remains important in reducing social unrest, tension and conflicts as a result of income polarization