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Monetary policy and wealth inequality in South Africa: Evidence from tax administrative data

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  • Goodness C. Aye
  • Laurence Harris
  • Junior T. Chiweza

Abstract

This paper examines the relationship between monetary policy and wealth inequality in South Africa. We employed a unique database of tax administrative data which allowed us to account for individual heterogeneity. These tax data span from 2011 to 2017 and include over 3 million individual taxpayers in South Africa after data cleaning. Results based on fixed- and random-effects panel model estimates show that monetary policy generally increases wealth Gini inequality while it decreases the wealth 90-10 percentile differential.

Suggested Citation

  • Goodness C. Aye & Laurence Harris & Junior T. Chiweza, 2020. "Monetary policy and wealth inequality in South Africa: Evidence from tax administrative data," WIDER Working Paper Series wp-2020-174, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2020-174
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    References listed on IDEAS

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    Keywords

    Monetary policy; wealth inequality; Tax data; heterogeneity;
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