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Race, Poverty, and Deprivation in South Africa

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  • Carlos Gradín

Abstract

The aim of this paper is to explain why poverty and material deprivation in South Africa are significantly higher among those of African descent than among whites. To do so, we estimate the conditional levels of poverty and deprivation Africans would experience had they the same characteristics as whites. By comparing the actual and counterfactual distributions, we show that the racial gap in poverty and deprivation can be attributed to the cumulative disadvantaged characteristics of Africans, such as their current level of educational attainment, demographic structure, and area of residence, as well as to the inertia of past racial inequalities. Progress made in the educational and labor market outcomes of Africans after Apartheid explains the reduction in the racial poverty differential.

Suggested Citation

  • Carlos Gradín, 2011. "Race, Poverty, and Deprivation in South Africa," Working Papers 1107, Universidade de Vigo, Departamento de Economía Aplicada.
    • Handle: RePEc:vig:wpaper:1107
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    References listed on IDEAS

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    1. F. Chantreuil & A. Trannoy, 1999. "Inequality decomposition values : the trade-off between marginality and consistency," THEMA Working Papers 99-24, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. repec:adr:anecst:y:2011:i:101-102:p:02 is not listed on IDEAS
    3. Servaas Van Der Berg & Megan Louw & Derek Yu, 2008. "Post‐Transition Poverty Trends Based On An Alternative Data Source1," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 58-76, March.
    4. Özler, Berk, 2007. "Not Separate, Not Equal: Poverty and Inequality in Post-apartheid South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 55(3), pages 487-529, April.
    5. Louis-Marie Asselin, 2009. "Analysis of Multidimensional Poverty," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, edition 1, number 978-1-4419-0843-8, November.
    6. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
    7. Servaas Van Der Berg & Megan Louw, 2004. "Changing Patterns Of South African Income Distribution: Towards Time Series Estimates Of Distribution And Poverty1," South African Journal of Economics, Economic Society of South Africa, vol. 72(3), pages 546-572, September.
    8. Louis-Marie Asselin, 2009. "Multidimensional Poverty and Inequality Analysis," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Analysis of Multidimensional Poverty, edition 1, chapter 0, pages 53-71, Springer.
    9. Murray Leibbrandt & Ingrid Woolard & Arden Finn & Jonathan Argent, 2010. "Trends in South African Income Distribution and Poverty since the Fall of Apartheid," OECD Social, Employment and Migration Working Papers 101, OECD Publishing.
    10. Charles Meth, 2006. "What was the poverty headcount in 2004 and how does it compare to recent estimates by van der Berg et al?," SALDRU Working Papers 1, Southern Africa Labour and Development Research Unit, University of Cape Town.
    11. 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.
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    1. How much does race contribute to poverty in South Africa?
      by Economic Logician in Economic Logic on 2011-11-30 21:41:00

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    Cited by:

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    2. Elbra, Ainsley D., 2013. "The forgotten resource curse: South Africa's poor experience with mineral extraction," Resources Policy, Elsevier, vol. 38(4), pages 549-557.

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    More about this item

    Keywords

    poverty; deprivation; race; decomposition; South Africa; households’ characteristics.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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