The Gini coefficient is the measure of income inequality, ranging from 0 to 1, with 0 representing a perfectly equal society and 1 representing a perfectly unequal society. Advertisement Releasing the report in Johannesburg, country director Paul Noumba Um stressed that inequality would have been even worse had it not been for government interventions, sinceto increase the social wage through investments in education, health, transport and housing, as well as by providing social grants to million South Africans. Nevertheless, fundamental policy action was required to tackle inequality, as well as to stimulate more inclusive growth. Advertisement In the absence of any intervention, however, the World Bank expects South Africa to continue on its low-growth path.
A Summary of Findings The distinction is also important at the level of economy: There are economies with high income inequality and relatively low wealth inequality such as Japan and Italy.
Different choices lead to different results. Individual earnings inequality among all workers — Includes the self-employed. Individual earnings inequality among the entire working-age population — Includes those who are inactive, e.
Household earnings inequality — Includes the earnings of all household members. Household market income inequality — Includes incomes from capital, savings and private transfers. Household disposable income inequality — Includes public cash transfers received and direct taxes paid. Household adjusted disposable income inequality — Includes publicly provided services.
There are many challenges in comparing data between economies, or in a single economy in different years. Examples of challenges include: Data can be based on joint taxation of couples e.
There are differences when it comes to inclusion of pension entitlements and other savings, and benefits such as employer provided health insurance.
Byit was eighty-six to one. Assortative mating refers to the phenomenon of people marrying people with similar background, for example doctors marrying doctors rather than nurses. It concluded that key sources of inequality in these countries include "a large, persistent informal sectorwidespread regional divides e.
The three richest people in the world possess more financial assets than the lowest 48 nations combined. It might have slightly decreased since that time at the expense of increasing inequality within countries. Widening income inequality is the defining challenge of our time.
In advanced economies, the gap between the rich and poor is at its highest level in decades. Inequality trends have been more mixed in emerging markets and developing countries EMDCswith some countries experiencing declining inequality, but pervasive inequities in access to education, health care, and finance remain.
The Gini coefficients for wealth are often much higher than those for income. This is the case for example in Scandinavian countries such as Sweden and Finland. This seems to be due to factors such as social insurance programmes welfare and the public pension scheme.In South Africa, as Murray Leibbrandt from Saldru points out, income shares are stacked towards the top 10%, with the lowest 5% of the population getting hardly any of the income.
A new report found that accelerating poverty and inequality reduction in South Africa will require a combination of policies that promote inclusive growth through. Poverty and inequality in South Africa: Policy considerations in an emerging democracy Jean D.
Triegaardt, PhD the world in terms of income inequality (World Bank Report, ). Inequality is also continued to be a major source of poverty reduction for millions of South Africans.
There. and Poverty Reduction in Low- and Middle-Income Countries Abstract Using comparative fiscal incidence analysis, this paper examines the impact of fiscal policy on inequality and poverty in twenty-nine low-and middle-income countries for circa the year South Africa, and Venezuela; and two high-income countries.
It is only by addressing the challenge of income inequality that African countries can achieve decisive progress towards poverty reduction and the Sustainable Development Goals (SDGs), according to the United Nations Development Programme’s (UNDP) study, Income Inequality Trends in sub-Saharan Africa: Divergence, Determinants, and Consequences.
D. Wealth inequality is very high, even higher than income inequality 51 E.
Low intergenerational mobility is an obstacle to inequality reduction 53 F. South Africa lags its peers on inclusiveness of consumption growth 56 i. Incidence of growth 56 G.
Inequality slows down poverty reduction 58 CHAPTER 4: DRIVERS OF POVERTY AND INEQUALITY IN SOUTH AFRICA 61 A.