Measuring and Explaining Patterns of Spatial Income Inequality from Outer Space : Evidence from Africa

This paper argues for night--lights data as an alternative data source for measuring spatial inequalities in Africa, where the paucity of subnational income data is persistent. The analysis compares the statistical relationships between income and lights-based measures of spatial income inequality in South Africa and shows that night-lights are a decent proxy for spatial income inequality. Further analysis of the patterns of lights-based spatial income inequality across 48 countries in Africa broadly reveals rising patterns between 1992 and 2013. Following the climate-economy literature, the analysis also reveals that temperature and precipitation changes significantly increased spatial inequality in the long-run and the effects penetrated through income and agriculture channels across countries in the continent. These findings provide important lessons for policy discussions about how to measure, explain the patterns of, and mitigate the potential drivers of spatial inequality in Africa