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Non-Income Welfare And Inclusive Growth In South Africa

Author

Listed:
  • Haroon Bhorat
  • Benjamin Stanwix
  • Derek Yu

    (Development Policy Research Unit
    Director and Professor)

Abstract

Recent studies on poverty trends in South Africa suggest that poverty increased in the 1990s, before a continuous downward trend took place after 2000. This study augments the income and expenditure-based literature by examining poverty trends using household assets and services. We consider numerous private assets, household service variables, and educational attainment in order to derive a non-income welfare index. Principal components analysis (PCA) is used to create an asset index and investigate the changes in non-income welfare across household income quintiles between 1993 and 2010. The results indicate large and statistically significant decreases in poverty, where the extent of this decline is more significant in the poorer quintiles and among female-headed households.

Suggested Citation

  • Haroon Bhorat & Benjamin Stanwix & Derek Yu, 2014. "Non-Income Welfare And Inclusive Growth In South Africa," Working Papers 201407, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:201407
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/content_migration/commerce_uct_ac_za/1093/files/DPRU%2520WP201407.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Haroon Bhorat & Carlene Van Der Westhuizen, 2012. "Poverty, Inequality and the Nature of Economic Growth in South Africa," Working Papers 12151, University of Cape Town, Development Policy Research Unit.
    2. repec:pri:cheawb:paxson_schady_childrenecuador is not listed on IDEAS
    3. Haroon Bhorat & Sumayya Goga & Carlene van der Westhuizen, 2007. "Welfare Shifts in the Post-Apartheid South Africa: A Comprehensive Measurement of Changes," Working Papers 07128, University of Cape Town, Development Policy Research Unit.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    5. Christina Paxson & Norbert Schady, 2007. "Cognitive Development among Young Children in Ecuador: The Roles of Wealth, Health, and Parenting," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    6. Cally Ardington & David Lam & Murray Leibbrandt & Matthew Welch, 2005. "The Sensitivity of Estimates of Post-Apartheid Changes in South African Poverty and Inequality to key Data Imputations," SALDRU/CSSR Working Papers 106, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    8. Murray Leibbrandt & Ingrid Woolard & Arden Finn & Jonathan Argent, 2010. "Trends in South African Income Distribution and Poverty since the Fall of Apartheid," OECD Social, Employment and Migration Working Papers 101, OECD Publishing.
    9. Haroon Bhorat & Carlene van der Westhuizen & Toughedah Jacobs, 2009. "Income and Non-Income Inequality in Post-Apartheid South Africa: What are the Drivers and Possible Policy Interventions?," Working Papers 09138, University of Cape Town, Development Policy Research Unit.
    10. David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 229-260, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Haroon Bhorat & Karmen Naidoo & Morné Oosthuizen & Kavisha Pillay, 2015. "Demographic, employment, and wage trends in South Africa," WIDER Working Paper Series 141, World Institute for Development Economic Research (UNU-WIDER).
    2. Tina Fransman & Derek Yu, 2018. "Multidimensional poverty in South Africa in 2001-2016," Working Papers 07/2018, Stellenbosch University, Department of Economics.
    3. Umakrishnan Kollamparambil & Mlungisi Ndlovu, 2023. "Assessing the Income and Subjective Wellbeing Relationship Across Sub-national Developmental Contexts," Journal of Happiness Studies, Springer, vol. 24(2), pages 769-790, February.
    4. Shinice Jackson & Derek Yu, 2023. "Re-examining the Multidimensional Poverty Index of South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 1-25, February.

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    More about this item

    Keywords

    poverty; asset index; income; poverty;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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