Intergenerational earnings mobility and equality of opportunity in South Africa

Type Working Paper - World Development
Title Intergenerational earnings mobility and equality of opportunity in South Africa
Author(s)
Volume 67
Publication (Day/Month/Year) 2015
Page numbers 396-405
URL http://opensaldru.uct.ac.za/bitstream/handle/11090/696/2014_131_Saldruwp.pdf?sequence=1
Abstract
The paper estimates the degree of intergenerational earnings persistence in South Africa. It explores the link
between this measure of social mobility and an index of inequality of opportunity. Using microdata from the
National Income Dynamics Study (NIDS), the paper finds that intergenerational earnings mobility in South Africa is
low. In addition, a limited set of inherited circumstances explains a significant fraction of earnings inequality among
male adults. Adding South Africa to the existing international literature supports the hypothesis that low levels of
intergenerational mobility and equality of opportunity are emblematic of high-inequality emerging economies.

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