A series of national accounts-consistent estimates of poverty and inequality in South Africa
AbstractThis paper makes a unique contribution to the South African literature in combining data from an alternative source of household survey data – the All Media and Product Survey (AMPS) – with national accounts income trends for this country, in the recent tradition of research on the world distribution of income performed by Bhalla (2002), Karshenas (2003), Bourguignon and Morrisson (2002), Sala-i-Martin (2002a; 2002b), and Quah (2002), amongst others. Its usefulness lies in arriving at alternative estimates of post-transition poverty and inequality that are consistent with the story that national accounts and other official data collectively tell us about the path of the South African economy during the post-transition period. While the method of scaling survey distribution data by national accounts means is somewhat controversial, it is not clear that the distributional trends obtained using the post-transition sets of either the IESs or the Population Censuses are more reliable, given serious deficiencies in both sources of data. Adjusted distributions yield lower levels of poverty and a stronger decline in poverty during the second half of the period than the figures obtained from the raw AMPS data. While the levels of poverty obtained using adjusted income distributions are artificially low, the derived downward trend is supported by a number of official data sources.
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Bibliographic InfoPaper provided by Stellenbosch University, Department of Economics in its series Working Papers with number 09/2007.
Date of creation: 2007
Date of revision:
Poverty; Inequality; Income distribution Analysis; South Africa;
Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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- Derek Yu, 2013. "Poverty and inequality estimates of National Income Dynamics Study revisited," Working Papers 05/2013, Stellenbosch University, Department of Economics.
- Derek Yu, 2013. "Some factors influencing the comparability and reliability of poverty estimates across household surveys," Working Papers 03/2013, Stellenbosch University, Department of Economics.
- Wilkinson, Kate, 2009. "Adapting EUROMOD for use in a developing country - the case of South Africa and SAMOD," EUROMOD Working Papers EM5/09, EUROMOD at the Institute for Social and Economic Research.
- Charles Meth, 2007. "Flogging a dead horse: Attempts by van der Berg et al to measure changes in poverty and inequality," SALDRU Working Papers 9, Southern Africa Labour and Development Research Unit, University of Cape Town.
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