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Mobility and Inequality in the First Three Waves of NIDS

Author

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  • Finn, Arden

    (SALDRU, School of Economics, University of Cape Town)

  • Leibbrandt, Murray

    (SALDRU, School of Economics, University of Cape Town)

Abstract

How much income mobility was there in South Africa between 2008 and 2012? Did this mobility serve to equalise or disequalise longer-term measures of income? In this paper we address the first question by assessing the extent of absolute and relative economic mobility. We then turn our attention to the second question of the joint relationship between mobility and inequality, and implement a new measure that is designed to reveal just how equalising or disequalising mobility has been. We find that there was a lot of absolute and relative mobility in the period covered by the first three waves of NIDS, and that this mobility served to equalise longer-term incomes slightly.

Suggested Citation

  • Finn, Arden & Leibbrandt, Murray, 2013. "Mobility and Inequality in the First Three Waves of NIDS," SALDRU Working Papers 120, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:120
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    References listed on IDEAS

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    1. Ingrid Woolard & Stephan Klasen, 2005. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 865-897.
    2. Jenkins, Stephen P., 2011. "Changing Fortunes: Income Mobility and Poverty Dynamics in Britain," OUP Catalogue, Oxford University Press, number 9780199226436, Decembrie.
    3. Derek Yu, 2010. "Poverty and inequality trends in South Africa using different survey data," Working Papers 04/2010, Stellenbosch University, Department of Economics.
    4. Dorrit Posel & Daniela Casale, 2011. "Relative Standing and Subjective Well-Being in South Africa: The Role of Perceptions, Expectations and Income Mobility," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(2), pages 195-223, November.
    5. M Leibbrandt & H Bhorat & I Woolard, 2001. "Household Inequality And The Labor Market In South Africa," Contemporary Economic Policy, Western Economic Association International, vol. 19(1), pages 73-86, January.
    6. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    7. Ranchhod, Vimal, 2013. "Earnings volatility in South Africa," SALDRU Working Papers 121, Southern Africa Labour and Development Research Unit, University of Cape Town.
    8. Paul L. Cichello & Gary S. Fields & Murray Leibbrandt, 2005. "Earnings and Employment Dynamics for Africans in Post-apartheid South Africa: A Panel Study of KwaZulu-Natal1," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(2), pages 143-190, June.
    9. 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.
    10. Finn, Arden & Leibbrandt, Murray, 2013. "The dynamics of poverty in the first three waves of NIDS," SALDRU Working Papers 119, Southern Africa Labour and Development Research Unit, University of Cape Town.
    11. Gary Fields, 2010. "Does income mobility equalize longer-term incomes? New measures of an old concept," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 409-427, December.
    12. Paul Cichello & Gary Fields & Murray Leibbrandt, 2003. "Earnings and Employment Dynamics for Africans in Post-apartheid South Africa: A Panel Study of KwaZulu-Natal," Working Papers 03077, University of Cape Town, Development Policy Research Unit.
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    Cited by:

    1. Tobias Lechtenfeld & Asmus Zoch, 2014. "Income Convergence in South Africa: Fact or Measurement Error?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 157, Courant Research Centre PEG.
    2. Arden Finn & Murray Leibbrandt & Vimal Ranchhod, 2016. "Patterns of persistence: Intergenerational mobility and education in South Africa," SALDRU Working Papers 175, Southern Africa Labour and Development Research Unit, University of Cape Town.
    3. Samson Mbewe & Ingrid Woolard, 2016. "Cross-Sectional Features of Wealth Inequality in South Africa: Evidence from the National Income Dynamics Study," SALDRU Working Papers 185, Southern Africa Labour and Development Research Unit, University of Cape Town.

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    Keywords

    mobility; inequality; National Income Dynamics Study; NIDS;
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