Heterogeneous relationships between income levels and associated correlates in Gauteng province, South Africa: quantile regression approach

Koech Cheruiyot

Development Southern Africa, 2020, vol. 37, issue 6, 871-887

Abstract: Despite implementation of several government policies since the dawn of democracy in South Africa, income distribution remains skewed in the country. This paper explores income distribution in the Gauteng province by addressing two important questions: first, what is the level and pattern of income distribution, and second, do the role of correlates in explaining income distribution differ across income groups? By employing quantile regression analysis, this paper’s results not only show the explanatory role of various correlates, such as race, but it also confirm that the explanatory role of these correlates is heterogeneous across income groups. The paper by drilling down into the data established that there are variations across some identifiable groups (e.g. youth, pensioners, and adults) and quantiles. These results enable policy makers to tailor policies to specific income and other identifiable groups, rather than one-size-fit-all policy focus.

Date: 2020
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DOI: 10.1080/0376835X.2019.1701415

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