Working Paper: CEPR ID: DP8155
Authors: Facundo Alvaredo; Anthony B. Atkinson
Abstract: There have been important studies of overall income inequality and of poverty in South Africa. In this paper, we approach the subject from a different direction: the extent and evolution of top incomes. We present estimates of the shares in total income of groups such as the top 1 per cent and the top 0.1 per cent, covering, with gaps, more than a hundred years. In order to explain the observed dynamics, here we consider three factors: the transfer of political authority, racial discrimination, and the rich mineral resources. The estimates of top income shares for recent years bear out the picture of South Africa as a highly unequal country.
Keywords: Distribution; Income; Taxation; South Africa; Top Income Shares
JEL Codes: D3; H0; N3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| transfer of political authority (P26) | income distribution (D31) |
| establishment of apartheid (O17) | income distribution (D31) |
| racial discrimination (J71) | income distribution (D31) |
| rich mineral resources (L72) | top incomes (D31) |
| fluctuations in gold production (L72) | top income shares (D33) |
| gold prices (G13) | top income shares (D33) |
| end of apartheid (O17) | income concentration (D31) |
| 1914 to 1993 (N94) | share of top 1% (D33) |