The impact of COVID-19 on inequality in South Africa
- Authors: Nyumbaiza, Peace Falina
- Date: 2023-03-31
- Subjects: COVID-19 Pandemic, 2020- Influence , Inequality , Labor market South Africa , Economic development South Africa , University of Cape Town. National Income Dynamics Study , Income distribution South Africa , Educational equalization South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419514 , vital:71650
- Description: The COVID-19 pandemic has raised concerns regarding its possible adverse income distributive consequences, and its different impact according to socioeconomic subgroups (Furceri et al. 2020). This research measures the impact of COVID-19 on inequality in South Africa. To do this the study uses the National Income Dynamic Study (NIDS) wave 5 (2018) and the National Income Dynamic Study Coronavirus Rapid Mobile (NIDS-CRAM) survey waves 1 – 5 (2020 - 2021) datasets to study income inequality in South Africa prior to and during the COVID-19 pandemic until mid-2021. The factor method developed by Lerman and Yitzhaki’s (1985) is used to identify the overall contribution of the different factor sources to income inequality. Labour income is identified as the largest contributing factor and so labour income inequality is decomposed by income determinants using the regression-based decomposition method proposed by Fields (2003). The analysis reveals that labour income worsened during the periods of strictest COVID lockdown, before returning to pre-pandemic levels of inequality as lockdown was eased. Education is the most important determinant of labour income inequality across all time periods, particularly for White, urban and female participants. Although education remains a driving factor of labour income inequality during the national disaster, its contribution lessens as the economy starts recovering by March 2021. Consequently, the contributions of gender, race, age and region increase during the same period. Identifying whom the inequal impact of pandemic has affected worse offers insight that emphasizes the importance social grant systems to aid bridge the inequality gap associated with COVID-19. , Thesis (MEcon) -- Faculty of Commerce, Economics and Economics History, 2023
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- Date Issued: 2023-03-31
Different dimensions of inequality and sustainable economic growth in Africa
- Authors: Raimi, Rasaq Being
- Date: 2022-12
- Subjects: Inequality , Sustainable development , Economic growth -- Africa
- Language: English
- Type: Doctoral's theses , Thesis
- Identifier: http://hdl.handle.net/10948/59884 , vital:62483
- Description: The recent unprecedented economic growth across Africa for over two decades has been anticipated to alleviate poverty and close up the wide inequality gap in the continent; its impact, however, on the vast majority of people in Africa appears to be insignificant as more households are still battling with poverty and the inequality gap is still wide. This has, however, raised empirical questions regarding the nature of the relationship that exists between economic growth and inequality in Africa. Hence, these questions have created gaps in the literature as some studies found positive relationship while other results state otherwise. The study fills the existing gap by re-examining the relationship between dimensions of inequality and sustainable growth in Africa. The study applied parametric and non-parametric econometric techniques on more recent inequalities data covering 28 African countries. Specifically, the study examined the relationship between income inequality and sustainable growth in Africa, investigated the relationship between education inequality and sustainable growth in Africa, analysed the relationship between gender inequality and sustainable growth in Africa and discussed the relationship between land inequality and sustainable growth in Africa. The study covered the period of 1998-2020 and the data for the study were sourced from Standardised World Income Inequality Data Base (SWIID), World Economic Forum, World Bank Online Data Base, Benaabdelaali et al‘s (2012) paper and Ziesemer, THW‘s (2016) paper. Result from the analysis of income inequality and sustainable growth indicates a positive unidirectional relationship between the two variables. The findings suggest that African growth promotes more income inequality and income inequality does not interrupt the growth potential of the continent. The findings further reveal a positive relationship between sustainable growth and poverty rate in African region. This suggests that African economic growth alone cannot solve African poverty problem. Analysis of sustainable growth and education inequality shows an inverse relationship between the two variables. The result indicates that sustainable growth helps in reducing education inequality but a further increase in education inequality drags down sustainable growth in the long-run. Also, poverty is found to have a positive relationship with education inequality in Africa. However, no causal relationship is found between sustainable growth and education inequality but rather a unidirectional causality running from poverty to education inequality in Africa. iv In relation to the gender inequality analysis, the study also found a negative relationship between the two variables. Specifically, while sustainable growth is found to be bridging gender gap, gender inequality on the other hand is found to be a limiting factor on sustainable growth in Africa. The results also indicate a strong positive significant relationship between poverty and gender inequality in Africa. The analysis reveals the vulnerability of African women to poverty and also suggests that many African countries are yet to harness the enormous potentials possessed by women for their regional development. Furthermore, the study found a negative relationship between sustainable growth and land inequality in Africa. The result indicates that unequal land distribution is among the factors preventing Africa from achieving its high dream of sustainable growth and it is further responsible for the severe poverty especially among the rural dwellers where agricultural land is considered as an important determinant of family income. One way causality running from land inequality to sustainable growth is also established via granger causality result which further indicates that uneven land distribution has effects on sustainable growth. Based on these findings, the study concludes that economic growth though has been helping in bridging some dimensions of inequality in Africa, income related inequality is exempted. Also, it is evident that economic growth alone is not adequate to close the wide inequality gap that has persisted for so long in Africa. In conclusion, the study recommended among other things that many African policy makers need to intensify their developmental efforts to reach everyone in their countries so as to effectively fight the ugly poverty situation across the continent. Also, salary structure needs to be revisited across Africa via introduction of appropriate tax to redistribute income and help the low income earners to relatively meet up with the higher income earners. This will help in closing income gap and at the same time alleviate poverty. , Thesis (PHD) -- Faculty of Business and Economic Science, 2022
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- Date Issued: 2022-12