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Subject: search.filters.subject.Income distribution--South Africa

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Now showing 1 - 3 of 3
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    Wealth inequality and entrepreneurial activity in South Africa: Evidence from the National Income Dynamics Study
    (2019) Sibanda, Numbulelo
    There is currently little empirical research exploring the interaction of wealth inequality, in particular, and entrepreneurship. South Africa is one of the most unequal countries in relation to net wealth distribution. The purpose of this study is to ascertain the relationship between wealth inequality and entrepreneurial activity in South Africa. Establish the nature of this relationship for individuals at the top of the wealth distribution (wealthy individuals) in contrast to those at the bottom (poor individuals) of the wealth distribution. A quantitative research design is used and a fixed effect model was estimated to test this studies hypotheses. A balanced sample from the National Income Dynamics Study (NIDS) survey was used and it covers all individuals in the geographic location of South Africa. This study finds evidence suggesting that amidst low levels of entrepreneurial activity, at an aggregate level, there is a positive relationship between wealth inequality and entrepreneurial activity in South Africa. It also finds evidence that suggests that this relationship is not significant across the entire wealth distribution, and in particular, it is not significant for the top end of the distribution (wealthy individuals). The relationship between casual labour and wealth inequality is also significant and positive at an aggregate level. Wealth inequality is high but the rate of entrepreneurial activity is still low by international standards. This means that a wider range of interventions need to put in place to improve entrepreneurial propensity in this country. This study has contributed to literature by bridging the gap between development economics and entrepreneurship by investigating the association between dimensions in both disciplines instead of one or the other in isolation. Furthermore it provided evidence to establish the type of relationship that exists between wealth inequality and entrepreneurial activity in South Africa.
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    Interrogating key determinants of poverty and inequality in South Africa since 1994 using life circumstances and service delivery indicators
    (2016) Masiteng, Kefiloe Doris
    The study articulates the key indicators that are drivers of poverty and inequality in the post-apartheid society. Historically, education, employment, household income and service delivery were not used as the foundation for measuring poverty and inequality in the country. Specific objectives for this study are to interrogate the key determinants that have influenced poverty and inequality in South Africa since 1994, and to investigate how the predictors of life circumstances and service delivery changed across the population over the period 1994–2007. Descriptive analysis was used on household surveys (General Household Survey (GHS) 2002–2011, Quarterly Labour Force Survey (QLFS) 2008–2011 and Living Conditions Survey (LCS) 2008 and 2011) to determine changes and trends in the living conditions of the population. Multivariate analytical approaches were applied on CS 2007 data with a sample of 360 000 households conducted by Statistics South Africa. Statistical regression models were developed for life circumstances and service delivery measures to explain poverty and inequality. Principal component analysis was applied on CS 2007 to promote multidimensional approaches for poverty and inequality measurement using development indicators as the components for life circumstances and service delivery. The main findings of the study show that low levels of education and high unemployment are the determinants of poverty and inequality. Positive linear relationships between educational attainment and age, employment and population group, age, sex and educational level of household head were established. Income disparities further perpetuate disparities in life circumstances and service delivery. Disparities service delivery are not the determinants but the consequences of poverty and inequality. Poverty and inequality in South Africa are structural showing that, while many people progressed in the last twenty-two years, many remained behind, and even progressed negatively as they remained worse off based on data since the 1996 census. While much work has been conducted on life circumstances such as education, employment and income, work on service delivery in relation to poverty is still limited and thus deserves more attention
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    Income inequality and household consumption expenditure in South Africa: 2000-2014
    (2016) Mosime, Dineo Ronald
    This paper investigates the nature of relationship between income inequality and consumption expenditure by households. The link between the distribution of income and household spending was determined by exploring the relationship between income inequality and household saving. The econometric estimates show that the propensity of the bottom earners to consume is higher than that of the high income earners. The conclusions from this paper are that; the bottom earners used credit to smooth their consumption expenditure, income inequality has not boosted saving of the top earners and wealth inequality has a minimal effect (although positive) on aggregate consumption Some of these finding are consistent with the theoretical view on income and wealth inequality (Kaldor, 1957) and Aghion et al. (1999). The absence of coping mechanism (such as access to credit and employment), suggests high inequality might result in a decline in the household demand, since the bottom and low earners has high marginal propensities to consume compared with that of the top earners. The existence of imperfect capital markets suggests distributive policies and economic growth are important channels for reducing income and wealth disparities in South Africa.