Abstract:
In the world, especially, in developing countries there is income inequality problem. So this
income inequality between individuals raises problems in economic, social and cultural,
which create differences on the standards of living among individuals. This study focused on
causes and effects of women’s household income inequality in Ambo town, West Shewa zone
Oromia regional state. The general objective of the study is to identify the causes and effects
of income inequality in Ambo town. For achieving the objective of the study, primary and
secondary data were used. Questionnaires are the major source of primary data that are
important to collect the available evidence or data. Interviews also used in this study. Due to
insufficiency of resources like time, budget and other limitation to observe the entire
population the sampling were used and the sampling technique of the study is simple random
sampling technique. To collect the data the study has selected 154 respondents from three
kebeles to get crucial information about income inequalities in the study area. The collected
data was analyzed using descriptive data analysis technique. The result of the study indicated
that there are various factors that affect women household income inequality. Those factors
include difference in education level, social factors, economic factors, cultural, political
factors, personal factor, Unemployment, less social acceptability and confidence. The study
also reveals that the effects of women household’s income inequalities were financial crisis,
conflicts, Political instability; disparities in living standard and poverty are from the major
ones. Lastly, the study recommended that, providing different job opportunities mainly for
the vulnerable groups specially to minimize the income gap between women household heads
was taken as the policy solutions in order to minimize income inequality problem between
women household in particular and the area’s population in general is required from the
policy providers.
