Determinants of households income differentials among people living in Uganda: a case study of Busoga sub-region

Abstract

This study is about analyzing the determinants of household income differentials among people living in Busoga sub-region in Uganda. This study was a secondary data analysis and it utilized (UNHS) data 2019/20 obtained from Uganda National Bureau of Statistics (UBOS). The study shows that, the highest percentage of respondents were females (55.18%) and the rest were males. Furthermore, it shows that 74.87% of the respondents were rural residents whereas the rest were urban residents. It further indicates that 83.38% 0f the respondents had never attained credit or borrowed from different financial institutions. Also, the Highest percentage of the type of employment is from other categories of employment (58.56%) followed by Enterprise Employment (22.71%) with the least one being Family workers who had about 2.16% as an employment type. Furthermore, by business ownership type, most (99.18%) business were owned by individuals followed by Partnership with a family member (0.63%) with the least being others (0.01%) type of business ownership. The study concludes that the factors that significantly determine the household incomes in Busoga Sub Region are Age of the household head, the size of the household, the place of residence, Borrowing and the Employment status of household head. Age of the household head affect the household income level. According to the study, increase in one’s age increases the household incomes level of the household and the Residence of the household affect the household incomes in that Household staying in the Urban areas have more incomes than those staying in Rural areas. Furthermore, it shows that households that borrow from financial institutions have higher incomes than those that do not borrow money from financial institutions. Furthermore, the study concludes that household incomes are affected by the size of the household. Conclusively, Employment Status or the work type engaged in by the household head affects the household income level in that Household head engaged in casual jobs and family works have less incomes than those involved in other income generating activities.