IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2022i4p210-221.html
   My bibliography  Save this article

Personal Financial Management and Wealth Inequality in South Africa

Author

Listed:
  • Marlin Jason Fortuin

    (University of South Africa)

  • Patricia Lindelwa Makoni

    (University of South Africa)

  • Gerhard Philip Maree Grebe

    (University of South Africa)

Abstract

Like many developing countries, South Africa has persistently experienced high levels of wealth inequality since independence in 1994. Despite government policy formulated to address this problem, there has been almost no improvement to the wealth status of the country’s majority population. This study thus examines how personal financial choices influenced wealth inequality in South Africa over the period 2010 to 2019 using a behavioural life-cycle model. Despite a decrease in wealth inequality over this period, the extent of this decrease is almost negligible. Results show that the majority of South African households do not possess enough wealth for household decision-making on wealth allocation to have a meaningful impact in reducing wealth inequality through more efficient use of assets. South African households should prioritise increased allocation of resources to education in labour sectors that possess and foresee a critical shortage of skills in the future. Such labour sectors are characterised by stable and higher levels of income, which then provides a mechanism for the accumulation of wealth.

Suggested Citation

  • Marlin Jason Fortuin & Patricia Lindelwa Makoni & Gerhard Philip Maree Grebe, 2022. "Personal Financial Management and Wealth Inequality in South Africa," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 18(4), pages 210-221, August.
    • Handle: RePEc:dug:actaec:y:2022:i:4:p:210-221
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1779/2208
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2022:i:4:p:210-221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.