Inclusive growth in South Africa? Inequality dynamics and the role of trade openness vs tax policies

Olivier Bargain, Miracle Benhura, H. Xavier Jara and Prudence Magejo

No wp-2026-26, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Market forces, and notably the role of trade openness, contribute to shaping inequality in South Africa and may limit the inclusiveness of its growth path. Recently, policy reforms may have helped to mitigate these effects. To better understand these developments, we analyse trends in post-tax income inequality using matched employer-employee administrative data from 2012 to 2021 and an original decomposition based on counterfactual tax microsimulations.

Keywords: Trade; Inequality; Taxation; Decomposition (search for similar items in EconPapers)
Date: 2026
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