This research analyses the effects of public debt on income inequality in Sub-Saha-
ran Africa. The analysis covers a panel of 38 countries over the period 2002–2021.
It uses the Generalized Method of Moments (GMM) in a two-step system and Struc-
tural Equation Modelling (SEM). The results show that public debt reduces income
inequality, particularly in countries with high levels of inequality. It reduces income
inequality through the quality of institutions and the development of human capital.
These results suggest that public debt can be directed towards the inclusive develop-
ment of human capital and the improvement of institutional quality, notably through
investments that benefit low-income earners more, either in terms of public service
provision or employment, to reduce income inequality.

Public debt , Income inequality, Institutional quality, Human capital, Sub-Saharan Africa