Intertemporal dynamics and determinants of welfare inequality among enset-producing and non-producing households in central Ethiopia: Insight from expenditure and asset value

Reducing inequality is a critical sustainable development goal (SDG), yet welfare inequality remains a persistent challenge for development and food security in developing countries. This study investigates the dynamics and determinants of welfare inequality among Enset-producing and non-producing households in Central Ethiopia from 2019–2024. Using panel data from 270 households across three waves (2018/19, 2021/22, 2023/24), the study employs descriptive statistics, factor analysis, the Atkinson index, and quantile regression models to analyze trends in welfare (asset and expenditure) inequality. The findings reveal that non-producer households consistently exhibited greater asset inequality, with the Atkinson index rising from 0.356 in 2019 to 0.781 in 2024, compared with an increase from 0.262 to 0.582 among producers. However, expenditure inequality for non-producers has steadily increased and fluctuations for producers over time. The determinants of inequality vary across groups and quantiles. For non-producers, education, sex, household size, age, credit access, income, and shocks significantly influence expenditure inequality. Among producers, factors such as education, remittances, land size, credit access, income, and shocks play pivotal roles. Asset inequality was similarly influenced by education, marital status, remittances, shocks, and land size, particularly in higher quantiles. These results highlight the heterogeneous effects of socioeconomic characteristics on welfare inequality, underscoring the need for targeted policies. Interventions should focus on improving education, credit access, and income opportunities; supporting shock-affected households; and promoting equitable land distribution and effective use of remittances to reduce growing inequalities in diverse household contexts.