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Income inequality in South Africa: Evidence from individual-level administrative tax data

Author

Listed:
  • Chandré Jacobs
  • Amina Ebrahim
  • Murray Leibbrandt
  • Jukka Pirttilä
  • Marlies Piek

Abstract

We use individual-level tax administrative data to estimate personal income inequality among the tax-compliant population in South Africa over the period 2011-21. Our results indicate that inequality of this population rose slightly over the period, with the Gini coefficient increasing from 0.64 to 0.66. The aggregate inequality metrics mask some notable changes in real incomes driven by relatively stronger real income growth at both the top and bottom ends of the distribution and very sluggish real income growth in the middle deciles.

Suggested Citation

  • Chandré Jacobs & Amina Ebrahim & Murray Leibbrandt & Jukka Pirttilä & Marlies Piek, 2024. "Income inequality in South Africa: Evidence from individual-level administrative tax data," WIDER Working Paper Series wp-2024-55, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2024-55
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    References listed on IDEAS

    as
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    3. Markus Jäntti & Milly Isingoma Nalukwago & Ronald Waiswa, 2022. "Income distribution in Uganda based on tax registers: what do top incomes say?," WIDER Working Paper Series wp-2022-6, World Institute for Development Economic Research (UNU-WIDER).
    4. Martin Wittenberg, 2017. "Wages and Wage Inequality in South Africa 1994–2011: Part 1 – Wage Measurement and Trends," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 279-297, June.
    5. Martin Wittenberg, 2017. "Measurement of earnings: Comparing South African tax and survey data," SALDRU Working Papers 212, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. Martin Wittenberg, 2017. "Wages and Wage Inequality in South Africa 1994–2011: Part 2 – Inequality Measurement and Trends," South African Journal of Economics, Economic Society of South Africa, vol. 85(2), pages 298-318, June.
    7. Ihsaan Bassier & Ingrid Woolard, 2021. "Exclusive Growth? Rapidly Increasing Top Incomes Amid Low National Growth in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 246-273, June.
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