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The contribution of income components to income inequality in the rural former homelands of South Africa: a decomposable Gini analysis

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  • M Leibbrandt
  • C Woolard
  • I Woolard

Abstract

Households in developing countries adopt livelihood strategies that often rely on income from a diversity of sources. From a policy perspective it becomes important to understand the relative importance of income sources in driving inter-household inequality and poverty. Recent theoretical advances allow for the decomposition of the Gini coefficient by income components and for an assessment of the impact of changes in income components on the Gini coefficient. This paper applies such a technique to South African data for the rural former 'homeland' areas. In doing so, the paper extends existing knowledge of South African income inequality. Particular attention is paid to integrating the decomposition work into debates about rural development policy in South Africa.

Suggested Citation

  • M Leibbrandt & C Woolard & I Woolard, 2000. "The contribution of income components to income inequality in the rural former homelands of South Africa: a decomposable Gini analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 9(1), pages 79-99.
    • Handle: RePEc:oup:jafrec:v:9:y:2000:i:1:p:79-99.
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    File URL: http://hdl.handle.net/10.1093/jae/9.1.79
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    1. Priscilla, Laishram & Singh, Oinam Krishnadas & Vatta, Kamal, 2021. "Effects of Income Sources on Inequality among Agricultural Households in North-east India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 4), December.
    2. Alemu, Zerihun Gudeta, 2012. "Livelihood Strategies in Rural South Africa: Implications for Poverty Reduction," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125411, International Association of Agricultural Economists.
    3. Murray Leibbrandt & Ingrid Woolard, 2001. "The labour market and household income inequality in South Africa: existing evidence and new panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 671-689.
    4. Meena, M.S. & Singh, K.M. & Singh, R.K.P. & Kumar, Anjani & Kumar, Abhay, 2016. "An exploratory research on income dynamics, inequality, determinants & policy implications for sustainable livelihoods of tribal community in eastern India," MPRA Paper 80265, University Library of Munich, Germany, revised 23 Sep 2016.
    5. Singh, K.M. & Meena, M.S. & Singh, R.K.P. & Kumar, Abhay & Kumar, Anjani, 2012. "Dynamics of income in Jharkhand: evidences from village studies," MPRA Paper 44822, University Library of Munich, Germany, revised 15 Nov 2012.
    6. Zhang, Qi & Bilsborrow, Richard E. & Song, Conghe & Tao, Shiqi & Huang, Qingfeng, 2019. "Rural household income distribution and inequality in China: Effects of payments for ecosystem services policies and other factors," Ecological Economics, Elsevier, vol. 160(C), pages 114-127.
    7. Rachel Nishimwe-Niyimbanira, 2018. "Multidimensional Poverty among the Villages of the South African Former Homeland of Qwaqwa," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 241-249.
    8. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
    9. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute of Labor Economics (IZA).
    10. Sinem Sefil-Tansever, 2017. "Income Distribution in Turkey during the Global Financial Crisis," Research in Applied Economics, Macrothink Institute, vol. 9(3), pages 91-107, September.
    11. Sten Dieden, 2003. "Integration into the South African Core Economy: Household Level Covariates," SALDRU/CSSR Working Papers 054, Southern Africa Labour and Development Research Unit, University of Cape Town.
    12. Grunewald, Nicole & Jakob, Michael & Mouratiadou, Ioanna, 2014. "Decomposing inequality in CO2 emissions: The role of primary energy carriers and economic sectors," Ecological Economics, Elsevier, vol. 100(C), pages 183-194.
    13. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute of Labor Economics (IZA).
    14. Ogwang Tomson, 2016. "The Marginal Effects in Subgroup Decomposition of the Gini Index," Journal of Official Statistics, Sciendo, vol. 32(3), pages 733-745, September.
    15. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute of Labor Economics (IZA).
    16. Ifeoluwa Adeola Ologunde & Forget Mingiri Kapingura & Kin Sibanda, 2020. "Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries," IJERPH, MDPI, vol. 17(18), pages 1-30, September.
    17. Julie A. Silva, 2013. "Rural Income Inequality in Mozambique: National Dynamics and Local Experiences?," The Review of Regional Studies, Southern Regional Science Association, vol. 43(1), pages 23-50, Summer.
    18. Justine Burns & Malcolm Keswell & Murray Leibbrandt, 2005. "Social Assistance, Gender, And The Aged In South Africa," Feminist Economics, Taylor & Francis Journals, vol. 11(2), pages 103-115.
    19. Jessica Standish-White & Arden Finn, 2015. "Unconditional cash transfers and children's educational outcomes: Evidence from the old-age pension programme in South Africa ," SALDRU Working Papers 147, Southern Africa Labour and Development Research Unit, University of Cape Town.
    20. Dorward, Andrew & Poulton, Colin & Kydd, Jonathan, 2001. "Rural And Farmer Finance: An International Perspective," ADU Working Papers 10924, Imperial College at Wye, Department of Agricultural Sciences.
    21. M Leibbrandt & H Bhorat & I Woolard, 2001. "Household Inequality And The Labor Market In South Africa," Contemporary Economic Policy, Western Economic Association International, vol. 19(1), pages 73-86, January.
    22. Michael Noble & Gemma Wright, 2013. "Using Indicators of Multiple Deprivation to Demonstrate the Spatial Legacy of Apartheid in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(1), pages 187-201, May.
    23. Ntuli, Herbert & Muchapondwa, Edwin, 2017. "Effects of wildlife resources on community welfare in Southern Africa," Ecological Economics, Elsevier, vol. 131(C), pages 572-583.
    24. Sten Dieden, 2004. "Homing in on the Core – Households Incomes, Income Sources and Geography in South Africa," Working Papers 04090, University of Cape Town, Development Policy Research Unit.
    25. Mehtabul Azam, 2016. "Income Inequality in India 2004-2012: Role of Alternative Income sources," Economics Bulletin, AccessEcon, vol. 36(2), pages 1160-1169.

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