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Income inequality and household debt: Examining the impact of relative income on formal and informal debt in South Africa

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  • Shakeba Foster

Abstract

How does income inequality impact the propensity for and levels of formal and informal household debt? This paper assesses this question using the two most recent waves of the South African Living Conditions Survey. A range of linear models as well as a zero-inflated Poisson model are employed, and inequality is measured by a household relative deprivation index, comparing households within provinces.

Suggested Citation

  • Shakeba Foster, 2023. "Income inequality and household debt: Examining the impact of relative income on formal and informal debt in South Africa," WIDER Working Paper Series wp-2023-37, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-37
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    References listed on IDEAS

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    Keywords

    Income inequality; Household income; Debt;
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