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| Title: | The Contribution of Income Components to Income Inequality in the Rural Former Homelands of South Africa: A Decomposable Gini Analysis |
| Authors: | Leibbrandt, Murray Woolard, Christopher  Woolard, Ingrid |
| Year: | 2000 |
| Periodical: | Journal of African Economies |
| Volume: | 9 |
| Issue: | 1 |
| Period: | March |
| Pages: | 79-99 |
| Language: | English |
| Geographic term: | South Africa |
| Subjects: | bantustans rural society household income Economics and Trade |
| External link: | https://jae.oxfordjournals.org/content/9/1/79.full.pdf |
| Abstract: | Within group inequality is at least as important as between group inequality in explaining South Africa's overall inequality. This paper applies a Gini decomposition analysis to rural incomes in the former 'homelands' of South Africa as a specific example of the use of the decomposition technique for policy analysis, in particular when the sample is divided into those households above a Household Subsistence Level and those households below this poverty line. Total income for each household is divided into six sources: remittances, wage income, agriculture, capital income, State transfers, and self-employment. The decomposition approach provides useful information about the processes surrounding the generation and distribution of income in rural 'homeland' communities. The decomposition analysis of income differentiation reveals that wage income is both the most important income component and also the most important source of inequality for South Africa's rural African population. Spontaneous or policy-induced changes to wage income will have community-wide impacts in the rural areas. Bibliogr., notes, ref., sum. |
