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inequality

Redistribution, Inequality, and Efficiency with Credit Constraints

Yoseph Y. Getachew and Stephen J. Turnovsky
We develop a model that characterizes the joint determination of income distribution and macroeconomic aggregate dynamics. We identify multiple channels through which alternative public policies such as transfers, consumption and income taxes, and public investment will affect the inequality;...
Apr 2020
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Inequality in South Africa: what does a composite index of wellbeing reveal?

Stephanié Rossouw and Talita Greyling
Policymakers need better information regarding wellbeing inequality to ascertain the contributing factors and to determine whether policy has been successful in improving the spread over time. In this paper, we construct a multidimensional composite wellbeing measure, at a micro level, which...
Sep 2019
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Benefits of regulation vs competition where inequality is high: The case of mobile telephony in South Africa

Ryan Hawthrone and Lukasz Grzybowksi
We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly unequal country, South Africa. Using six waves of a consumer survey of over 134,000 individuals between 2009-2014, we estimate a discrete-choice model allowing for individual-specific...
Aug 2019
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Effects of Wildlife Resources on Community Welfare: Income, Poverty and Inequality

Herbert Ntuli and Edwin Muchapndwa
This paper demonstrates the importance of wildlife in the portfolio of environmental income in the livelihoods of poor rural communities living adjacent to a national park. The results show that wealthier households consumed more wildlife products in total than relatively poor households. However,...
Oct 2015
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Estimating Income Mobility When Income is Measured with Error: The Case of South Africa

Rulof P. Burger, Stephan Klasen and Asmus Zoch
There are long-standing concerns that household income mobility is over-estimated due to measurement errors in reported incomes, especially in developing countries where collecting reliable survey data is often difficult. We propose a new approach that exploits the existence of three waves of panel...
May 2016
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The Contribution of Fiscal Decentralization to Regional Inequality: Empirical Results for South African Municipalities

Hammed Amusa and Ramos Mabugu
Over the past two decades, many African countries have carried out reforms aimed at decentralizing the political, administrative and fiscal structures of the public sector. The need to transform the structure of governance is informed by the view that decentralization increases the overall...
Apr 2016
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Addressing structural change issues in the context of South Africa's political dispensation

Biniam E. Bedasso
The current structure of South Africa’s economy is partly a product of the terms of the country’s political dispensation. The availability of capital mobility as an exit option is a key aspect of South Africa’s negotiated democracy. As long as inequality remains high, capital continues to gravitate...
Nov 2014
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Political transition in a small open economy: Retracing the economic trail of South Africa’s long walk to democracy

Biniam E. Bedasso
This paper seeks to offer an economic explanation for the emergence of democracy in societies with high income inequality and narrow middle-class such as Apartheid South Africa. The presence of a credible threat of capital flight is shown to render democracy less unpleasant to the elites by making...
Sep 2014
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Economic Growth and Inequality: Evidence from the Young Democracies of South America

Manoel Bittencourt
We investigate in this paper whether income growth has played any role on inequality in all nine young South American democracies during 1970-2007. The results, based on dynamic panel time-series analysis, suggest that income growth has played a progressive role in reducing inequality during the...
Jul 2013
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