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Shifts in Non-Income Welfare in South Africa: 1993-2004

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Author Info

  • Haroon Bhorat
  • Carlene van der Westhuizen
  • Pranushka Naidoo

    ()
    (Development Policy Research Unit, University of Cape Town)

Abstract

The aim of this study is to provide an analysis of the shifts in non-income welfare that have occurred over the period 1993 to 2004. This analysis serves as a complement to existing research which has focused on shifts in income poverty and inequality in the post-apartheid period. In addition, the study is one of only a few that provides a complete overview of the first decade of democracy by means of the comprehensive time period it covers. We use a technique called factor analysis to construct an asset index as an alternative, non-income based, measure of welfare. Variables reflecting household access to a range of services and assets are used in the construction of our asset index. An initial descriptive overview of the shifts in access to services and assets provides strong evidence that government asset and service delivery between 1993 and 2004 was pro-poor in nature. When standard measures of poverty are applied to our asset index values, statistically significant decreases in the headcount asset poverty rates between 1993 and 2004 across a range of covariates are found. A series of inequality measures are also applied to our asset index. The estimates show that across all covariates, asset inequality decreased between 1993 and 2004. Inequality decompositions indicate that within-group inequality has increased in importance in determining aggregate inequality.

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File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP06-108.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 06108.

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Length: 76 pages
Date of creation: May 2006
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, May 2006, pages 1-76
Handle: RePEc:ctw:wpaper:06108

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Related research

Keywords: South Africa: Non-income welfare; access to services; asset index; headcount asset poverty rates;

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Cited by:
  1. Dorrit Posel & Michael Rogan, 2012. "Gendered trends in poverty in the post-apartheid period, 1997--2006," Development Southern Africa, Taylor & Francis Journals, vol. 29(1), pages 97-113, March.
  2. Michael Rogan, 2013. "Poverty and Headship in Post-apartheid South Africa, 1997–2006," Social Indicators Research, Springer, vol. 113(1), pages 491-511, August.
  3. Tobias Lechtenfeld & Asmus Zoch, 2014. "Income Convergence in South Africa: Fact or Measurement Error?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 157, Courant Research Centre PEG.
  4. Andy McKay & Emilie Perge, 2011. "How strong is the evidence for the existence of poverty traps? A multi country assessment," Working Paper Series 2511, Department of Economics, University of Sussex.

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