Examining the Misery Index and Its Effects on Economic Inequality and Social Welfare in Sub-Saharan Africa: The Moderating Role of Corruption

Godswill Osuma () and Ntokozo Nzimande
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Godswill Osuma: School of Economics, University of Johannesburg, Auckland Park, Johannesburg 2006, South Africa
Ntokozo Nzimande: School of Economics, University of Johannesburg, Auckland Park, Johannesburg 2006, South Africa

Sustainability, 2025, vol. 17, issue 6, 1-18

Abstract: Over the years, high levels of corruption in Sub-Saharan Africa have diverted resources from social welfare, weakened institutional effectiveness, and deepened economic inequalities. This study explores the misery index’s effects on economic inequality and social welfare in 19 Sub-Saharan African countries, highlighting corruption’s role in amplifying these issues. The misery index, a composite measure of inflation and unemployment, indicates economic distress exacerbating poverty and inequality, disproportionately affecting lower-income populations. This research employs quantile regression and the System Generalised Method of Moments to analyse data from 2007 to 2022, revealing that corruption often undermines poverty reduction efforts, with economic growth and foreign direct investment showing limited effects without strong institutional frameworks. The findings emphasise the need for multifaceted policies targeting job creation, inflation control, and anti-corruption initiatives to foster inclusive growth and mitigate economic disparity. To address inequality, this study recommends that governance be strengthened, corruption curbed, and inflation controlled while expanding welfare programmes and promoting inclusive growth across Sub-Saharan Africa.

Keywords: misery index; economic inequality; Sub-Saharan Africa; social welfare; corruption; quantile regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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