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Earnings inequality and unemployment in South Africa

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  • Fiona Tregenna

Abstract

Unemployment and earnings inequality have moved together remarkably closely in South Africa in recent years. This article explores the relationship between unemployment and earnings inequality in South Africa, investigating the extent to which changes in unemployment can account for changes in earnings inequality. Static and dynamic decompositions of earnings inequality by employment status reveal the centrality of unemployment in accounting for the both level and trend of earnings inequality. The distribution of employment in the formal and informal sectors is found to be of lesser importance in explaining earnings inequality, as is wage dispersion within each of these categories. The findings point to the central importance of reducing unemployment in South Africa if the extremely high levels of inequality are to be reduced.

Suggested Citation

  • Fiona Tregenna, 2011. "Earnings inequality and unemployment in South Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(5), pages 585-598, September.
    • Handle: RePEc:taf:irapec:v:25:y:2011:i:5:p:585-598
    DOI: 10.1080/02692171.2011.557053
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    Cited by:

    1. Osama D. Sweidan, 2023. "Geopolitical Risk and Income Inequality: Evidence from the US Economy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 575-597, September.
    2. Jurgita Markevičiūtė & Jolita Bernatavičienė & Rūta Levulienė & Viktor Medvedev & Povilas Treigys & Julius Venskus, 2022. "Impact of COVID-19-Related Lockdown Measures on Economic and Social Outcomes in Lithuania," Mathematics, MDPI, vol. 10(15), pages 1-20, August.
    3. José Gabriel Palma, 2011. "Forum 2011," Development and Change, International Institute of Social Studies, vol. 42(1), pages 87-153, January.
    4. Osama D. Sweidan, 2023. "The Effect of Geopolitical Risk on Income Inequality: Evidence from a Panel Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 47-66, June.
    5. 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.
    6. Erten, Bilge & Leight, Jessica & Tregenna, Fiona, 2019. "Trade liberalization and local labor market adjustment in South Africa," Journal of International Economics, Elsevier, vol. 118(C), pages 448-467.
    7. 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.

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