Poverty and inequality in services sector of Sudan

This research paper aims to address income poverty and inequality in service sector of Sudan. Poverty and inequality indicators were computed using both primary and secondary data sources. P-alpha equation, Povstat and Simsip models were used for poverty measurement and simulation. Results showed that more than 82 percent of employees in services sector living with poverty. Employees in health, education, transportation and security and justice were the most poor followed by public sector, communication and commerce respectively. The inequality measured Gini index was 43 percent with large inequality among commerce employees. The future prospect of poverty among employees in services, growth would slightly reduce poverty and inequality. The combined effect of growth and food prices increase would also reduce poverty and inequality. However, the decomposition of this effect into income and distribution effects, income effect would reduce poverty while the distributional effect would increase moderate poverty indicators and reduce food poverty indicators.