Income Inequality and Violent Crime in Nigeria: A Panel Corrected Standard Error Approach

Adenuga Fabian Adekoya



Inequality persists at high rate across and within Nigeria. The inequality caused the government to embark on social programmes to cushion it. In spite this effort, millions of Nigerians still live below the poverty line because of wide gap in income distribution. To unravel the effect of wide gap in income distribution, this study examines the link between income inequality and violent crime in Nigeria using a panel data of 36 States and Federal Capital Territory from 2008-2010. This panel data was estimated through the Panel Corrected Standard Error Approach. It was found that income inequality causes violent crime at 5% level of significance. Also, education and imprisonment show reducing-effect on violent crime significantly. The results suggested that investing in education of citizens including inmates improves their skills and provides good access to better job. Furthermore, appropriate policies are suggested to reduce violent crime in the country.

Keywords: Income inequality, Violent crime, Panel Corrected Standard Error.

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