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Inequality in South Africa: what does a composite index of well-being reveal?

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  • Stephanié Rossouw
  • Talita Greyling

Abstract

In this paper, we construct a multidimensional composite well-being measure for South Africa at a micro-level. This allows us to compare the inequalities in well-being in 2008 and 2017. Additionally, we determine the factors, which are significantly related to the inequality in well-being at these two points in time, using recentered influence function (RIF) regressions. Lastly, we use the Blinder–Oaxaca decomposition technique to determine if the change in well-being inequality, is mainly due to an endowment – or a coefficient effect. The RIF results show factors increasing well-being inequality are demographic but also extends to knowledge and skills in the technology sector, access to financial markets, transport and living outside of urban centres. Blinder–Oaxaca decomposition results indicate the difference in well-being inequality is mainly due to the coefficient effect. Policies should not only endeavour to attain a more equal spread of endowments but should also consider the elasticities of these endowments.

Suggested Citation

  • Stephanié Rossouw & Talita Greyling, 2021. "Inequality in South Africa: what does a composite index of well-being reveal?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(2), pages 221-243, May.
    • Handle: RePEc:taf:nzecpp:v:55:y:2021:i:2:p:221-243
    DOI: 10.1080/00779954.2021.1904439
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    Cited by:

    1. Tamás Laczkó & Pongrác Ács & Kata Morvay-Sey & Bence Cselik & Miklós Stocker, 2022. "The Role of Sports in the Subjective Psychological Well-Being of Hungarian Adult Population in Three Waves of the COVID-19 Pandemic," IJERPH, MDPI, vol. 20(1), pages 1-16, December.
    2. Adhikari, Tamanna & Greyling, Talita & Rossouw, Stephanie, 2021. "The ugly truth about social welfare payments and households' subjective well-being," GLO Discussion Paper Series 883, Global Labor Organization (GLO).

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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