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 The Post-Apartheid Evolution of Earnings Inequality in South Africa, 1995-2004
Phillippe G. Leite, Terry McKinley and Rafael Guerreiro O sorio 7 location. According to Ferreira, Leite and Litchfield (2006), the inability to control for such correlations is one reason w hy these types of inequality decom positions are m erely suggestive of the causal factors underlying distri...
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Phillippe G. Leite, Terry McKinley and Rafael Guerreiro O sorio 7 location. According to Ferreira, Leite and Litchfield (2006), the inability to control for such correlations is one reason w hy these types of inequality decom positions are m erely suggestive of the causal factors underlying distributional dynam ics. 3 IN COM E IN EQ U A LITY IN SOU TH A FRICA : A N OVERVIEW A. TRENDS IN IN COME IN EQ UALITY AND O THER WELL-BEING MEASURES South Africa is one of the m ost unequal countries in
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=7
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=7
Phillippe G. Leite, Terry McKinley and Rafael Guerreiro O sorio 5 C. DECOMPO SITIO N S O F THE GEN ERALIZED EN TRO PY MEASURES 1. STATIC D ECOM POSITION Generalized Entropy inequality indexes have the advantage—<span class="highlight">com</span> pared to the Gini coefficient—of being decom posable (statically) into sub-groups. For this study, w e use nine characteristics of the heads of households to differentiate the population into the follow ing sub-groups: Age of household head i) under 25, ii) 25-34, iii) 35-44, iv) 45
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=9
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=9
Phillippe G. Leite, Terry McKinley and Rafael Guerreiro O sorio 7 location. According to Ferreira, Leite and Litchfield (2006), the inability to control for such correlations is one reason w hy these types of inequality decom positions are m erely suggestive of the causal factors underlying distributional dynam ics. 3 IN <span class="highlight">COM</span> E IN EQ U A LITY IN SOU TH A FRICA : A N OVERVIEW A. TRENDS IN IN COME IN EQ UALITY AND O THER WELL-BEING MEASURES South Africa is one of the m ost unequal countries in
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=10
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=10
ensional inequality, one should highlight the large <span class="highlight">com</span> ponent of between-group inequality by race. This has contributed to the low level of hum an developm ent am ong Africans. The World D evelopm ent Report 2006 highlights the im pact of such inequalities by <span class="highlight">com</span> paring the life chances of tw o hypothetical new borns in South Africa, one African and poor and the other White and rich: “the opportunities that these two children face to reach their full hum an potential are vastly different from the outset
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=16
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=16
14 International Poverty Centre Working Paper nº 32 allow us to split self-em ployed incom e from em ployer incom e. This is a distinct disadvantage because the self-em ployed are likely poorer than em ployers. Social insurance transfers <span class="highlight">com</span> prise all types of regular receipts from pensions, social w elfare and other governm ental grants. O ther regular incom es <span class="highlight">com</span> prise item s such as royalties, interest, dividends, alim ony, and allow ances received from fam ily m em bers living elsew here. N
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=17
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=17
Phillippe G. Leite, Terry McKinley and Rafael Guerreiro O sorio 15 The decom position of changes in inequality yields three term s: one for the changes in the w eight of the incom e <span class="highlight">com</span> ponent in total incom e; another for the changes in the concentration (i.e., relative distribution) of the incom e <span class="highlight">com</span> ponent; and a third for the interaction betw een the tw o. Table 4 show s that the Gini coefficient of total incom e rose 2.7 per cent from 1995 to 2000 as a result of these factors. The first
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=32
www.undp-povertycentre.org/pub/IPCWorkingPaper32.pdf#page=32
30 International Poverty Centre Working Paper nº 32 APPEN D IX PO VERTY DECOMPO SITIO N PRESEN TED IN TABLE 1 Datt and Ravallion (1992) have proposed a decom position technique for Foster, Greer and Thorbecke poverty indices19 that identifies a grow th <span class="highlight">com</span> ponent (w hich is calculated by holding the Lorenz curve constant and allow ing the m ean to change), a redistribution <span class="highlight">com</span> ponent (w hich holds the m ean constant and allow s the Lorenz curve to change) and a residual term .20 Mathem atically
For full Report: South Africa
policymakers remain focused on employment creation as their primary objec- tive. Indeed, implementing an effective employment-targeted program should indeed enhance the capacity of policymakers to advance a broader economic policy agenda, since they can pursue other objectives—such as buildin...
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policymakers remain focused on employment creation as their primary objec- tive. Indeed, implementing an effective employment-targeted program should indeed enhance the capacity of policymakers to advance a broader economic policy agenda, since they can pursue other objectives—such as building a com- petitive capital goods industry—without neglecting the imperatives of job cre- ation and poverty reduction. NOTE 1. The CPIX consumer price index excludes interest rates on mortgage bonds, which are in
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http://www.undp-povertycentre.org/publications/reports/South%20Africa.pdf#page=33
www.undp-povertycentre.org/publications/reports/South%20Africa.pdf#page=3...
policymakers remain focused on employment creation as their primary objec- tive. Indeed, implementing an effective employment-targeted program should indeed enhance the capacity of policymakers to advance a broader economic policy agenda, since they can pursue other objectives—such as building a <span class="highlight">com</span>- petitive capital goods industry—without neglecting the imperatives of job cre- ation and poverty reduction. NOTE 1. The CPIX consumer price index excludes interest rates on mortgage bonds, which are in
The Fiscal Implications of Scaling up ODA to Deal with the HIV/AIDS Pandemic
28 Conference Paper the case of South Africa, it is estim ated that disbursem ents from bilateral donors m ay be below 50 per cent of com m itm ents (N dlovu, 2005, quoted in U N AID S, 2006). In these circum stances, it is extrem ely difficult for the Finance M inistry and the H ealth M in...
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28 Conference Paper the case of South Africa, it is estim ated that disbursem ents from bilateral donors m ay be below 50 per cent of com m itm ents (N dlovu, 2005, quoted in U N AID S, 2006). In these circum stances, it is extrem ely difficult for the Finance M inistry and the H ealth M inistry to plan scaled up responses to H IV/AID S. As noted by Lew is (2005b) scaling up to deal w ith H IV/AID S w ill require large-scale additional hiring, w ith little ability thereafter to dow nsize should
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http://www.undp-povertycentre.org/pub/IPCConferencePaper3.pdf#page=30
www.undp-povertycentre.org/pub/IPCConferencePaper3.pdf#page=30
28 Conference Paper the case of South Africa, it is estim ated that disbursem ents from bilateral donors m ay be below 50 per cent of <span class="highlight">com</span> m itm ents (N dlovu, 2005, quoted in U N AID S, 2006). In these circum stances, it is extrem ely difficult for the Finance M inistry and the H ealth M inistry to plan scaled up responses to H IV/AID S. As noted by Lew is (2005b) scaling up to deal w ith H IV/AID S w ill require large-scale additional hiring, w ith little ability thereafter to dow nsize should
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