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Inequality in South Africa: what does a composite index of well-being reveal?
Ist Teil von
New Zealand economic papers, 2021-05, Vol.55 (2), p.221-243
Ort / Verlag
Auckland: Routledge
Erscheinungsjahr
2021
Link zum Volltext
Quelle
Taylor & Francis
Beschreibungen/Notizen
In this paper, we construct a multidimensional composite well-being measure for South Africa at a micro-level. This allows us to compare the inequalities in well-being in 2008 and 2017. Additionally, we determine the factors, which are significantly related to the inequality in well-being at these two points in time, using recentered influence function (RIF) regressions. Lastly, we use the Blinder-Oaxaca decomposition technique to determine if the change in well-being inequality, is mainly due to an endowment - or a coefficient effect. The RIF results show factors increasing well-being inequality are demographic but also extends to knowledge and skills in the technology sector, access to financial markets, transport and living outside of urban centres. Blinder-Oaxaca decomposition results indicate the difference in well-being inequality is mainly due to the coefficient effect. Policies should not only endeavour to attain a more equal spread of endowments but should also consider the elasticities of these endowments.