Current poverty and income distribution in the context of South African history
Stellenbosch Working Paper Series No. WP22/2010Publication date: 2010
Author(s):
This paper describes and analyses current poverty and income distribution in South Africa, with a central concern the relationship between poverty, inequality and growth. The paper also investigates patterns of and trends in poverty and income distribution, a literature with a long and distinguished history. Drawing from recent literature in this regard, the paper shows that the labour market – rather than access to wealth or to political and fiscal power – currently sets the limits to redistribution. Wage inequality, deeply rooted in South Africa’s history, plays a central role in overall income distribution, and patterns of human capital development are fundamental to the future growth path and therefore to poverty and income distribution. The paper therefore concludes that reducing inequality substantially is currently unlikely without a massive increase in the human capital of those presently poor, but that prospects in this regard are inauspicious.
JEL Classification:O15, D31, D63, J31, N37
Keywords:South Africa, poverty, income distribution, labour market
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Upcoming Seminars
Monday 21 July 202512:00-13:00
Izak Odendaal: Old Mutual Wealth Chief Investment Strategist
Topic: "Diverging fiscal policies and what it means for markets"
12:00-13:00
Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
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Prof Willem Boshoff: Stellenbosch University
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
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4 Jul 2025 One Big Beautiful Bill Act passes as tariff pause deadline loomsThis week brought a flurry of data releases alongside a heavy dose of political drama, both locally and globally. Yesterday’s stronger-than-expected US jobs report was the standout global data release. Domestically, tensions persisted in the DA-ANC relationship. On the international stage, headlines were dominated by the passage of the One Big Beautiful...
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