An analysis of transient and chronic multidimensional poverty in South Africa between 2008 and 2017
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
This study derives a Multidimensional Poverty Index (MPI) for each wave using data from the South African National Income Dynamics Study (NIDS) between 2008 to 2017. The MPI is measured using the counting method of Alkire and Foster (2011). In addition, the duration approach of Foster (2009) is used to measure, depending on the MPI, whether households suffer multidimensional chronic or transient poverty. Furthermore, variables that increase a household's likelihood of experiencing chronic or transient multidimensional poverty as opposed to never experiencing multidimensional poverty are found using multinomial logit
regression analysis.
The results show that the MPI decreased from approximately 7% to 4% between 2008 and 2017. Additionally, the share of South African households which experienced multidimensional poverty decreased from approximately 15% to 10% between 2008 and 2017. However, the intensity of poverty has only decreased by two percentage points from 44% during the same period. This indicates that there has not been much progress in the number of dimensions in which poor households are deprived even as multidimensional poverty decreased. Years spent in school for adults living in the household and unemployment were the dimensions which contributed the most towards the MPI for households that were either chronically or transiently poor.
Approximately 73% of households in South Africa never experienced Multidimensional Poverty between 2008 and 2017. Based on the specified deprivation score cut-off, between 1% and 13% of South African households were living in chronic multidimensional poverty. Transient multidimensional poverty affected more than 25% of South Africans. Notably, a higher portion of South Africa's multidimensional poverty is transitory in nature. Black households and female-headed households had the highest incidence of both chronic and transient multidimensional poverty. The multinomial logit model indicates that the likelihood of experiencing chronic or transient multidimensional poverty is higher among households led by individuals without formal education, those with an economically inactive head, and those
based in rural areas.
Description
A Research Report submitted in partial fulfillment of the Degree of Master of Commerce (Economics/Economic Science) in the School of Economics and Finance, University of the Witwatersrand, Johannesburg, 2024
Keywords
Multidimensional poverty, Chronic poverty, Transient poverty, UCTD
Citation
Munzhelele, Tumelo. (2024). An analysis of transient and chronic multidimensional poverty in South Africa between 2008 and 2017 [Masters, University of the Witwatersrand, Johannesburg]. WireDSpace.