Life chances and class: Estimating inequality of opportunity in South Africa for various life stages

Stellenbosch Working Paper Series No. WP08/2013
 
Publication date: 2013
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
 
Abstract:

This paper aims to determine the degree to which class and socio-economic background influence a child’s life chances and their future perspectives. We build on the growing number of papers that deal with the concept of inequality of opportunity. Comparing children from poor and middle class households we find significant differences in terms of access to basic education, sanitation, clean water and mobility. Our multivariate analysis highlights the importance of class membership for schooling outcomes and labour market prospects of a child. The single most important variable to explain schooling outcomes are mother’s education. While income seems to be less important for younger ages it becomes increasingly important for the chances of reaching matric and obtaining tertiary education. The results are robust for various models and panel data.

 
JEL Classification:

D63, I24, J62

Keywords:

Inequality of opportunity, Intergenerational mobility, South Africa, Middle class

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BER Weekly

21 January
Domestically, markets were focused on the latest meeting of the Monetary Policy Committee (MPC) of the SA Reserve Bank (SARB) last week. On the global front, the news flow was dominated by British political chaos associated with the Brexit debacle. Besides a brief overview of the MPC decision, the domestic section looks at the latest retail sales data,...

Read the full issue