Temperature extremes and income inequality: subnational evidence of Sub-Saharan Africa
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2025-07-08
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en
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This research investigates the relationship between extreme temperatures and subnational income inequality across 428 regions in 40 Sub-Saharan African countries, spanning the years 2000-2022. Using a fixed-effects panel model with daily binned temperature data, it identifies a counterintuitive finding: an increase in extremely hot days (above 30°C) is associated with reductions in income inequality, particularly in the macro-region Eastern Africa. In contrast, cold temperatures (below 18°C) show a weaker and sometimes positive effect on income inequality, though not consistently across specifications. Additionally, this study explores agriculture as a potential transmission channel; while it appears to influence the temperature-income inequality relationship, it is unlikely the primary pathway. Overall, this research contributes to the literature by shifting the focus to subnational dynamics and highlighting the importance of daily temperature data in understanding income inequality outcomes. These insights carry practical relevance for policymakers, advocating for region-specific climate adaptation strategies.
Keywords: income inequality, Gini index, climate change, extreme temperatures, SSA, agricultural transmission channel
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Faculteit der Managementwetenschappen