Income & expenditure inequality: Analysis of the NIDS Wave 1 dataset

Type Working Paper - NIDS Discussion Paper no.5
Title Income & expenditure inequality: Analysis of the NIDS Wave 1 dataset
Publication (Day/Month/Year) 2009
Page numbers 1-15
The purpose of this report is to provide a snapshot of income and expenditure inequality in South Africa as measured by the 2008 data from the National Income Dynamics Study. While there are many ways in which to decompose and analyse inequality, the most common feature of post-Apartheid studies is the focus on changes in inequality by racial group. We remain with this precedent here although some mention is also made of inter-provincial inequality and inequality by geo-type1. Section 2 of this report presents an overview of aggregate income and expenditure inequality while Section 3 analyses inequality through the prism of race. Finally, Section 4 discusses two spatial dimensions of South African inequality by briefly looking at provincial and geo-type-level inequality. All income and expenditure figures in the report refer to monthly household income/expenditure per capita. The figures of per capita household income and expenditure were constructed by dividing the final derived figures in the data2 by the number of people living in the household. All of the analysis below makes use of post-stratified sampling weights in order to make the results reflective of the South African population, rather than the NIDS sample.

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