Social well-being inequality in Africa

In this paper, we construct a composite social well-being index to investigate disparities between 30 African countries. We do this because previous inequality studies relied on income measures; however, when it comes to Africa, specifically, income is not an adequate measure to capture well-being. Furthermore, we apply the recentered influence function (RIF) method to regress the variance of social well-being on likely influencing factors. Lastly, we use the Blinder–Oaxaca decomposition technique to investigate the gap between countries with higher, and those with lower levels of social well-being. The results indicate that there are high levels of inequality; however, the inequality in social well-being is less stark than in income. Factors that are significantly related to inequality are employment, gender equality, exports, CO₂ emissions, population density, public protests, capital investment, and internet access. The gap that exists between higher and lower social well-being countries is mainly due to the endowment effect.