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A series of national accounts-consistent estimates of poverty and inequality in South Africa

Author

Listed:
  • Servaas van der Berg

    () (Department of Economics, University of Stellenbosch)

  • Ronelle Burger

    () (Department of Economics, University of Stellenbosch)

  • Rulof Burger

    () (Department of Economics, University of Stellenbosch)

  • Megan Louw

    () (Department of Economics, University of Stellenbosch)

  • Derek Yu

    () (Department of Economics, University of Stellenbosch)

Abstract

This paper makes a unique contribution to the South African literature in combining data from an alternative source of household survey data – the All Media and Product Survey (AMPS) – with national accounts income trends for this country, in the recent tradition of research on the world distribution of income performed by Bhalla (2002), Karshenas (2003), Bourguignon and Morrisson (2002), Sala-i-Martin (2002a; 2002b), and Quah (2002), amongst others. Its usefulness lies in arriving at alternative estimates of post-transition poverty and inequality that are consistent with the story that national accounts and other official data collectively tell us about the path of the South African economy during the post-transition period. While the method of scaling survey distribution data by national accounts means is somewhat controversial, it is not clear that the distributional trends obtained using the post-transition sets of either the IESs or the Population Censuses are more reliable, given serious deficiencies in both sources of data. Adjusted distributions yield lower levels of poverty and a stronger decline in poverty during the second half of the period than the figures obtained from the raw AMPS data. While the levels of poverty obtained using adjusted income distributions are artificially low, the derived downward trend is supported by a number of official data sources.

Suggested Citation

  • Servaas van der Berg & Ronelle Burger & Rulof Burger & Megan Louw & Derek Yu, 2007. "A series of national accounts-consistent estimates of poverty and inequality in South Africa," Working Papers 09/2007, Stellenbosch University, Department of Economics.
  • Handle: RePEc:sza:wpaper:wpapers40
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    File URL: https://www.ekon.sun.ac.za/wpapers/2007/wp092007/wp-09-2007.pdf
    File Function: First version, 2007
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    Citations

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    Cited by:

    1. Charles Meth, 2007. "Flogging a dead horse: Attempts by van der Berg et al to measure changes in poverty and inequality," SALDRU Working Papers 9, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Derek Yu, 2013. "Poverty and inequality estimates of National Income Dynamics Study revisited," Working Papers 05/2013, Stellenbosch University, Department of Economics.
    3. Gabrielle, Wills, 2009. "South Africa’s Informal Economy: A Statistical Profile," MPRA Paper 52909, University Library of Munich, Germany.
    4. repec:ilo:ilowps:485483 is not listed on IDEAS
    5. Tina Fransman & Derek Yu, 2018. "Multidimensional poverty in South Africa in 2001-2016," Working Papers 07/2018, Stellenbosch University, Department of Economics.
    6. Wilkinson, Kate, 2009. "Adapting EUROMOD for use in a developing country - the case of South Africa and SAMOD," EUROMOD Working Papers EM5/09, EUROMOD at the Institute for Social and Economic Research.
    7. Arden Finn, 2015. "A National Minimum Wage in the Context of the South African Labour Market," SALDRU Working Papers 153, Southern Africa Labour and Development Research Unit, University of Cape Town.
    8. Leubolt, Bernhard., 2014. "Social policies and redistribution in South Africa," ILO Working Papers 994854833402676, International Labour Organization.
    9. Jean-Mari Hakizimana & Hermanus Geyer, 2014. "Socio-economic inequality in South Africa according to different disparity indices," ERSA conference papers ersa14p133, European Regional Science Association.
    10. Derek Yu, 2013. "Some factors influencing the comparability and reliability of poverty estimates across household surveys," Working Papers 03/2013, Stellenbosch University, Department of Economics.
    11. Finn, Arden & Leibbrandt, Murray & Oosthuizen, Morne, 2014. "Poverty, inequality, and prices in post-apartheid South Africa," WIDER Working Paper Series 127, World Institute for Development Economic Research (UNU-WIDER).
    12. repec:dug:actaec:y:2016:i:5:p:33-50 is not listed on IDEAS

    More about this item

    Keywords

    Poverty; Inequality; Income distribution Analysis; South Africa;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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