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Understanding Contemporary Household Inequality in South Africa

Author

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  • M Leibbrandt
  • I Woolard
  • H Bhorat

Abstract

Within-group inequality is a major contributor to overall inequality, but the impact depends crucially on which measure is used. Wage income contributes 67% to total inequality, despite wage income being the least unequally distributed of all income sources. Of this, half is in fact driven by the 30% of households with no wage earners. Access to wage income is central to determining which households are able to avoid poverty and, even, the depth to which poor households sink below the poverty line. Whereas labour market earnings drive household income inequality, unemployment is a central determinant of poverty.

Suggested Citation

  • M Leibbrandt & I Woolard & H Bhorat, 2000. "Understanding Contemporary Household Inequality in South Africa," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 24(3), pages 31-51, November.
    • Handle: RePEc:taf:rseexx:v:24:y:2000:i:3:p:31-51
    DOI: 10.1080/03796205.2000.12129275
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    Cited by:

    1. Kholeka Mdingi & Sin-Yu Ho, 2023. "Income inequality and economic growth: An empirical investigation in South Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2230027-223, June.
    2. Murray Leibbrandt & Ingrid Woolard, 2001. "The labour market and household income inequality in South Africa: existing evidence and new panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 671-689.
    3. Benhura, Miracle, 2007. "Determinants of South African Women’s Labour Force Participation, 1995–2004," IZA Discussion Papers 3119, Institute of Labor Economics (IZA).
    4. Thurlow, James, 2002. "Can South Africa afford to become Africa's first welfare state?," FCND discussion papers 139, International Food Policy Research Institute (IFPRI).
    5. Servaas van der Berg & Ronelle Burger & Rulof Burger & Megan Louw & Derek Yu, 2005. "Trends in poverty and inequality since the political transition," Working Papers 01/2005, Stellenbosch University, Department of Economics.
    6. Rulof Burger & Ronelle Burger & Servaas van der Berg, 2004. "Emergent Black Affluence and Social Mobility in Post-Apartheid South Africa," Working Papers 04087, University of Cape Town, Development Policy Research Unit.
    7. Pauw, Kalie, 2007. "Agriculture and poverty: Farming for food or farming for money?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(2), pages 1-24, June.
    8. 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.
    9. Nicoli Nattrass, 2003. "Unemployment and AIDS: The Social-Democratic Challenge for South Africa," SALDRU/CSSR Working Papers 043, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.
    11. Pauw, Kalie, 2005. "Quantifying the Economic Divide in South African Agriculture: An Income-Side Analysis," Working Paper Series 15630, PROVIDE Project.
    12. Sten Dieden, 2003. "Integration into the South African Core Economy: Household Level Covariates," SALDRU/CSSR Working Papers 054, Southern Africa Labour and Development Research Unit, University of Cape Town.
    13. Ranchhod, Vimal, 2013. "Earnings volatility in South Africa," SALDRU Working Papers 121, Southern Africa Labour and Development Research Unit, University of Cape Town.
    14. Servaas van der Berg & Megan Louw, 2003. "Changing Patterns of South African income distribution: Towards time series estimates of distribution and poverty," Working Papers 02/2003, Stellenbosch University, Department of Economics.
    15. Miquel Pellicer & Vimal Ranchhod & Mare Sarr & Eva Wegner, 2011. "Inequality Traps in South Africa: An overview and research agenda," SALDRU Working Papers 57, Southern Africa Labour and Development Research Unit, University of Cape Town.
    16. 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.
    17. Miracle Ntuli & Prudence Kwenda, 2013. "Labour Unions and Wage Inequality Among African Men in South Africa," Working Papers 13159, University of Cape Town, Development Policy Research Unit.

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