Understanding Contemporary Household Inequality in South Africa

Murray Leibbrandt, Ingrid Woolard and Haroon Bhorat

Studies in Economics and Econometrics, 2000, vol. 24, issue 3, 31-51

Abstract: Within-group inequality is a major contributor to overall inequality, but the impact depends crucially on which measure is used. Wage income contributes 67% to total inequality, despite wage income being the least unequally distributed of all income sources. Of this, half is in fact driven by the 30% of households with no wage earners. Access to wage income is central to determining which households are able to avoid poverty and, even, the depth to which poor households sink below the poverty line. Whereas labour market earnings drive household income inequality, unemployment is a central determinant of poverty.

Date: 2000
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DOI: 10.1080/03796205.2000.12129275

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