Income and Non-Income Inequality in Post-Apartheid South Africa: What are the Drivers and Possible Policy Interventions?

Development Policy Research Unit DPRU Working Paper No. 09/138

80 Pages Posted: 4 Dec 2012

See all articles by H. Bhorat

H. Bhorat

University of Cape Town (UCT) - Development Policy Research Unit

Carlene van der Westhuizen

University of Cape Town

Toughedah Jacobs

University of Cape Town (UCT)

Multiple version iconThere are 2 versions of this paper

Date Written: August 1, 2009

Abstract

Analysis using data from the 1995 and 2000 Income and Expenditure Surveys has found a significant increase in income inequality over the period and, further, that this increase in inequality eroded any significant poverty-reduction gains from higher economic growth. Secondly, the study aims to identify the drivers of the reproduction of inequality in post-apartheid South Africa. Throughout the time period wage inequality has been the main contributor to the growing income inequality. While we found that social transfers have little effect on income inequality when we decomposed the various sources of income, when grant income is excluded as a source of income from total income we find that it is an extremely important supportive source of income and without it many households would experience negative income growth.

Keywords: income inequality, social transfers, negative income growth

Suggested Citation

Bhorat, Haroon I. and van der Westhuizen, Carlene and Jacobs, Toughedah, Income and Non-Income Inequality in Post-Apartheid South Africa: What are the Drivers and Possible Policy Interventions? (August 1, 2009). Development Policy Research Unit DPRU Working Paper No. 09/138. Available at SSRN: https://ssrn.com/abstract=2184183 or http://dx.doi.org/10.2139/ssrn.2184183

Haroon I. Bhorat (Contact Author)

University of Cape Town (UCT) - Development Policy Research Unit ( email )

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Carlene Van der Westhuizen

University of Cape Town ( email )

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Rondesbosch, 7700
South Africa

Toughedah Jacobs

University of Cape Town (UCT) ( email )

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Rondebosch, Western Cape 7701
South Africa

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