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Re-estimating gender differences in income in South Africa: The implications of equivalence scales

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  • Dorrit Posel
  • Daniela Casale
  • Erofili Grapsa

Abstract

Most studies of poverty and inequality in South Africa measure individual welfare by deflating total household resources, such as income, by household size. This per-capita method makes no adjustments for the different consumption needs of children or for household economies of scale. However, in addition to being more likely to live in households where average per-capita household income is lower compared with men, we show that women in South Africa also live in significantly larger households which include more children. These gendered differences in household composition are driven to a large degree by low rates of co-residency between men and women. We therefore investigate how adjusting household resources for the presence of children and economies of scale affects measures of the gender gap in income.

Suggested Citation

  • Dorrit Posel & Daniela Casale & Erofili Grapsa, 2016. "Re-estimating gender differences in income in South Africa: The implications of equivalence scales," Development Southern Africa, Taylor & Francis Journals, vol. 33(4), pages 425-441, July.
    • Handle: RePEc:taf:deveza:v:33:y:2016:i:4:p:425-441
    DOI: 10.1080/0376835X.2016.1179105
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    Cited by:

    1. Mysikova, Martina & Zelinsky, Tomas, 2019. "On the Measurement of the Income Poverty Rate: the Equivalence Scale across Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 99(4), pages 383-397.
    2. Steven F. Koch, 2021. "Equivalence Scales with Endogeneity and Base Independence," Working Papers 202185, University of Pretoria, Department of Economics.
    3. Posel, Dorrit & Oyenubi, Adeola, 2023. "Heterogeneous gender gaps in mental wellbeing: Do women with low economic status face the biggest gender gaps?," Social Science & Medicine, Elsevier, vol. 332(C).
    4. Steven F. Koch, 2022. "Equivalence scales in a developing country with extensive inequality," South African Journal of Economics, Economic Society of South Africa, vol. 90(4), pages 486-512, December.
    5. Samuel T. Partey & Angela D. Dakorah & Robert B. Zougmoré & Mathieu Ouédraogo & Mary Nyasimi & Gordon K. Nikoi & Sophia Huyer, 2020. "Gender and climate risk management: evidence of climate information use in Ghana," Climatic Change, Springer, vol. 158(1), pages 61-75, January.
    6. Amina Ebrahim & Kezia Lilenstein, 2019. "Gender and the South African labour market: Policy relevant research possibilities using South African tax data," WIDER Working Paper Series wp-2019-31, World Institute for Development Economic Research (UNU-WIDER).

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