The labour market and household income inequality in South Africa: existing evidence and new panel data
South Africa's very high Gini coefficient has always served as the starkest indicator of the country's extreme inequality. The racial legacy has always been highlighted in explaining this inequality. This paper presents evidence that between race contributions to inequality have declined from the early 1970s to the mid 1990s. However, they are still considerably higher than comparative international figures. The racially rigged labour market has always been assumed to operate as the key force underlying these changing inequality patterns and the paper presents findings for more formal decompositions of the linkage between the labour market and household inequality. This work confirms the dominance of the labour market in driving total South African, African and even KwaZulu-Natal inequality. However, the contribution of wage income is uneven across these different levels of aggregation and across time; suggesting complex patterns of inequality generation. The following lengthy section of the paper uses a panel data set to measure and explain the mobility patterns of a sample of African households in Kwazulu-Natal. It is found that there was less income mobility at the top and the bottom of the distribution than in the middle and overall there was an increase in income differentiation. Simple mobility profiling and more complex modelling confirm the importance of labour market changes in influencing movement of real adult equivalent income of households as well as mobility across deciles, across poverty lines. Demographic changes are also seen to be very important. The paper concludes with a summary and some suggestions for further work. Copyright © 2001 John Wiley & Sons, Ltd.
Volume (Year): 13 (2001)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Almeida dos Reis, Jose Guilherme & Paes de Barros, Ricardo, 1991. "Wage inequality and the distribution of education : A study of the evolution of regional differences in inequality in metropolitan Brazil," Journal of Development Economics, Elsevier, vol. 36(1), pages 117-143, July.
- Leibbrandt, Murray & Woolard, Christopher & Woolard, Ingrid, 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 (CSAE), vol. 9(1), pages 79-99, March.
- Ingrid Woolard & Murray Leibbrandt, 1999. "Household Incomes, Poverty and Inequality in a Multivariate Framework," Working Papers 99031, University of Cape Town, Development Policy Research Unit.
- Lam, David & Levison, Deborah, 1991.
"Declining inequality in schooling in Brazil and its effects on inequality in earnings,"
Journal of Development Economics,
Elsevier, vol. 37(1-2), pages 199-225, November.
- Levison, D. & Lam, D., 1990. "Declining Inequality In Schooling In Brazil And Its Effects On Inequality In Earning," Papers 618, Yale - Economic Growth Center.
- Aaberge, Rolf, et al, 2002.
"Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 48(4), pages 443-69, December.
- Aaberge, Rolf & Björklund, Anders & Jäntti, Markus & Palme, Mårten & Pedersen, Peder & Smith, Nina & Wennemo, Tom, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," SSE/EFI Working Paper Series in Economics and Finance 98, Stockholm School of Economics, revised Aug 2002.
- Rolf Aaberge & Anders Björklund & Markus Jäntti & Mårten Palme & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Discussion Papers 168, Statistics Norway, Research Department.
- Leibbrandt, M.V. & Woolard, C.D. & Woolard, I.D., 1996.
"The Contribution of Income Components to Income Inequality in South Africa: A Decomposable Gini Analysis,"
125, World Bank - Living Standards Measurement.
- Leibbrandt, M.V. & Woolard, C.D. & Woolard, I.D., 1996. "The Contribution of Income Components to Income Inequality in South Africa. A Decomposable Gini Analysis," Papers 125a, World Bank - Living Standards Measurement.
- H. Bhorat & J. Hodge, 1999. "Decomposing Shifts in Labour Demand in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 67(3), pages 155-168, 09.
- Richard V. Burkhauser & John G. Poupore, 1997. "A Cross-National Comparison Of Permanent Inequality In The United States And Germany," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 10-17, February.
- Glewwe, P., 1990.
"Investigating The Determinants Of Household Welfare In Cote D'Ivoire,"
71, World Bank - Living Standards Measurement.
- Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
- Lillard, Lee A & Willis, Robert J, 1978.
"Dynamic Aspects of Earning Mobility,"
Econometric Society, vol. 46(5), pages 985-1012, September.
- Stephan Klasen & Ingrid Woolard, 2009.
"Surviving Unemployment Without State Support: Unemployment and Household Formation in South Africa,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 18(1), pages 1-51, January.
- Stephen Klasen & Ingrid Woolard, 2005. "Surviving unemployment without state support: Unemployment and household formation in South Africa," SALDRU/CSSR Working Papers 129, Southern Africa Labour and Development Research Unit, University of Cape Town.
- Klasen, Stephan & Woolard, Ingrid, 2000. "Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa," IZA Discussion Papers 237, Institute for the Study of Labor (IZA).
- Stephan Klasen & Ingrid Woolard, 2001. "Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa," CESifo Working Paper Series 533, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:13:y:2001:i:6:p:671-689. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.