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Changing Patterns of South African income distribution: Towards time series estimates of distribution and poverty

Author

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  • Servaas van der Berg

    (Department of Economics, Stellenbosch University)

  • Megan Louw

    (Department of Economics, Stellenbosch University)

Abstract

Research on income distribution in South Africa has, for obvious reasons, focused on inter-racial (inter-group) income distribution. Quite dramatic changes have occurred in inter-racial income distribution patterns since the 1970s, with the black share of income rising for the first time and at times exceeding the rise in their population share. This implies a narrowing inter-racial income gap. Data on income distribution remain scarce, so that it remains difficult to obtain the full picture about changes in income distribution. In particular, widening inequality within the black population has received much attention. Rises in black unemployment and in black wages have had inequality-inducing effects on black incomes. Is maldistribution of income between races now making way for maldistribution of income within race groups? Put differently, is inequality shifting from inter-group to intra-group inequality (from between group to within group inequality)? This paper pieces together information from various sources of data (censuses, household surveys, marketing surveys, published wage data series, etc.) to inform estimates of inter- and intra-group distribution over a longer time frame, in an effort to improve analysis of income inequality and poverty trends. These income distribution patterns also have considerable implications for the growth and evolution of the South African consumer market.

Suggested Citation

  • 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.
    • Handle: RePEc:sza:wpaper:wpapers8
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Servaas van der Berg & Megan Louw & Derek Yu, 2007. "Post-transition poverty trends based on an alternative data source," Working Papers 08/2007, Stellenbosch University, Department of Economics.
    2. repec:ldr:wpaper:92 is not listed on IDEAS
    3. Sophie Mitra, 2008. "The Recent Decline In The Employment Of Persons With Disabilities In South Africa, 1998‐2006," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 480-492, September.
    4. Amory Gethin, 2020. "Extreme Inequality and the Structure of Political Cleavages in South Africa, 1994-2019," World Inequality Lab Working Papers halshs-03022282, HAL.
    5. Nicolas Hérault, 2005. "A Micro-Macro Model for South Africa: Building and Linking a Microsimulation Model to a CGE Model," Melbourne Institute Working Paper Series wp2005n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Paula Armstrong & Bongisa Lekezwa & Krige Siebrits, 2008. "Poverty in South Africa: A profile based on recent household surveys," Working Papers 04/2008, Stellenbosch University, Department of Economics.
    7. N. Hérault, 2006. "Building And Linking A Microsimulation Model To A Cge Model For South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 74(1), pages 34-58, March.
    8. Carlos Gradín, 2013. "Race, Poverty and Deprivation in South Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 22(2), pages 187-238, March.
    9. Aguero, Jorge M. & Carter, Michael R. & May, Julian, 2006. "Poverty and Inequality in the First Decade of South Africa's Democracy: What Can be Learned from Panel Data?," Staff Papers 12621, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    10. 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.
    11. Rebecca Davies, 2007. "Rebuilding the Future or Revisiting the Past? Post-apartheid Afrikaner Politics," Review of African Political Economy, Taylor & Francis Journals, vol. 34(112), pages 353-370, June.
    12. Kalie Pauw & Liberty Mncube, 2007. "The Impact of Growth and Redistribution on Poverty and Inequality in South Africa," Research Report 7, International Policy Centre for Inclusive Growth.
    13. Johan Fourie, 2006. "The South African poor white problem in the early 20th century: Lessons for poverty today," Working Papers 14/2006, Stellenbosch University, Department of Economics.
    14. Nicolas Hérault, 2005. "Trade Liberalisation, Poverty and Inequality in South Africa: A CGE-Microsimulation Analysis," Melbourne Institute Working Paper Series wp2005n17, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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    More about this item

    Keywords

    income distribution; South Africa; time series; poverty;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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