Structural transformation, labour markets, and inequality dynamics

Despite its position as the economic hub of the Southern African region, South Africa has the unenviable position of being the most unequal society in the world. This work stream attempts to understand how historical, social, economic, financial, fiscal, and environmental issues contribute to this inequality.

Researchers will analyze these contributions to deep inequality while looking at the demographic, social, and labour market dynamics that contribute to the persistence of poverty and inequality. Through this work, we aim to provide policymakers with insights and solutions that can strengthen the emerging policy options on reducing poverty and inequality and contributing to inclusive growth.

What data is used for this research?

A new dataset provides previously unavailable administrative tax data which will allow researchers to look more deeply at inequality dynamics, particularly the labour market dynamics that condition it. In Phase II, work stream 3 will continue to develop this novel dataset, augmenting it with additional data sources from other government institutions.

Working paper
Chandré Jacobs, Amina Ebrahim, Murray Leibbrandt, Jukka Pirttilä, and Marlies Piek
We use individual-level tax administrative data to estimate personal income inequality among the tax-compliant population in South Africa over the period 2011–21. Our results indicate that inequality of this population rose slightly over the period...
SEPTEMBER 2024
Labour market and inequality
News
SA-TIED
On 2 August 2024, SA-TIED research was presented at a Government Technical Advisory Centre seminar that reflected on the state of South Africa's economy, 30 years into democracy. Joshua Budlender, a Postdoctoral Research Fellow at...
AUGUST 2024
Labour market and inequality
Macro-fiscal analysis
Working paper
Sanduku Mulumba, Lawrence Edwards and David Fadiran
In this paper, we use the new economic geography (NEG) framework to estimate the extent to which spatial wage disparities in the South African manufacturing sector are an outcome of economic forces such as market...
August 2024
Labour market and inequality
News
SA-TIED
The Southern Africa – Towards Inclusive Economic Development (SA-TIED) programme hosted the SA-TIED, National Treasury Secure Data Facility (NTSDF) data lab roadshow at the North-West University campus in Potchefstroom, South Africa, on 23 July 2024...
July 2024
Enterprise development
Public revenue
Labour market and inequality
Blog
Shakeba Foster
South Africa ranks as the world’s most unequal country by income. This is largely due to high wage inequality, given that wages are the main income source for the majority of the working population. Exploring...
January 2024
Labour market and inequality
Working paper
Jacomien Van der Merwe and Tom de Jong
Addressing unemployment and income inequalities in transport and land-use policies is important, particularly in South Africa, which is currently experiencing one of the highest unemployment rates and income inequality in the world. This research investigates...
December 2023
Labour market and inequality
Working paper
Shakeba Foster
This paper investigates the role of firm characteristics in driving wage inequality and firm wage premia in the South African labour market. The Abowd, Kramarz, and Margolis (AKM) and Kline, Saggio, and Sølvsten (KSS) regression-based...
October 2023
Labour market and inequality
Working paper
Michelle Pleace, Matthew Clance and Nicky Nicholls
The attainment of financial independence by women holds significant importance for women’s empowerment and has implications for the increasing prevalence of female-headed households in the country. Previous estimates of the gender wage gap in South...
October 2023
Labour market and inequality
News
SA-TIED
SA-TIED marked a significant milestone on 13 October 2023, by hosting an inaugural National Treasury Secure Data Facility (NTSDF) data lab roadshow at the University of Pretoria . The event featured a presentation by the...
October 2023
Enterprise development
Public revenue
Labour market and inequality