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Inequality in South Africa: The distribution of income, expenditure and earnings

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  • Fiona Tregenna
  • Mfanafuthi Tsela

Abstract

This article empirically analyses the state of inequality in South Africa. International comparisons show South Africa to be among the most unequal countries in the world. The levels of income inequality and earnings inequality are analysed with a range of measures and methods. The results quantify the extremely high level of inequality in South Africa. Earnings inequality appears to be falling in recent years, with relative losses in the upper-middle parts of the earnings distribution. Decomposing income inequality by factor source reveals the importance of earnings in accounting for overall income inequality. The article concludes by observing that, internationally, significant sustained decreases in inequality rarely come about without policies aimed at achieving that, and suggests that strong policy interventions would be needed to reduce inequality in South Africa to levels that are in the range typically found internationally.

Suggested Citation

  • Fiona Tregenna & Mfanafuthi Tsela, 2012. "Inequality in South Africa: The distribution of income, expenditure and earnings," Development Southern Africa, Taylor & Francis Journals, vol. 29(1), pages 35-61, March.
    • Handle: RePEc:taf:deveza:v:29:y:2012:i:1:p:35-61
    DOI: 10.1080/0376835X.2012.645640
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    Cited by:

    1. Tao Liu & Benjamin Quasinowski & André Soares, 2020. "The Emulation and Adaptation of a Global Model of Clinical Practice Guidelines on Chronic Heart Failure in BRICS Countries: A Comparative Study," IJERPH, MDPI, vol. 17(5), pages 1-21, March.
    2. Juan-Pierrà Bruwer & Judith Smith, 2018. "The Role of Basic Business Skills Development and Their Influence on South African Small, Medium and Micro Enterprise Sustainability," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 48-62.
    3. Porras, Laila, 2015. "Croissance, inégalités et pauvreté au sein des pays émergents : le cas des BRICS," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 18.
    4. Martin Wittenberg, 2017. "Measurement of earnings: Comparing South African tax and survey data," SALDRU Working Papers 212, Southern Africa Labour and Development Research Unit, University of Cape Town.
    5. Vusi Gumede, 2021. "Revisiting Poverty, Human Development and Inequality in Democratic South Africa," Indian Journal of Human Development, , vol. 15(2), pages 183-199, August.
    6. Anthony Mveyange, 2015. "Night lights and regional income inequality in Africa," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    7. Andreoni, Antonio & Tregenna, Fiona, 2020. "Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 324-340.
    8. Jayati Das-Munshi & Crick Lund & Catherine Mathews & Charlotte Clark & Catherine Rothon & Stephen Stansfeld, 2016. "Mental Health Inequalities in Adolescents Growing Up in Post-Apartheid South Africa: Cross-Sectional Survey, SHaW Study," PLOS ONE, Public Library of Science, vol. 11(5), pages 1-16, May.
    9. Tregenna, Fiona, 2011. "Halving Poverty in South Africa: Growth and Distributional Aspects," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
    10. Magejo, Prudence & Benhura, Miracle, 2015. "A Detailed Decomposition Analysis of the Public-Private Sector Wage Gap in South Africa," IZA Discussion Papers 9271, Institute of Labor Economics (IZA).
    11. Miracle Ntuli & Prudence Kwenda, 2013. "Labour Unions and Wage Inequality Among African Men in South Africa," Working Papers 13159, University of Cape Town, Development Policy Research Unit.
    12. Rocco ZIZZAMIA & Vimal RANCHHOD, 2020. "Earnings inequality over the life-course in South Africa," Working Paper 98ced6cc-3016-49dc-a2b6-b, Agence française de développement.
    13. Anthony Mveyange, 2015. "Night lights and regional income inequality in Africa," WIDER Working Paper Series wp-2015-085, World Institute for Development Economic Research (UNU-WIDER).

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