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
Francesco Amodio, Michele Di Maio, Yifan Li, and Patrizio Piraino
We study the relationship between product market competition and labour market outcomes in South Africa. We combine firm-level data from tax records with individual-level data from the labour force survey. We estimate markups across sectors...
March 2020
Labour market and inequality
News
Econ3x3 has published a blog by SA-TIED researchers on their most recent working paper covering poverty, inequality, and the precarity of the middle class in South Africa. The authors, Rocco Zizzamia, Simone Schotte, and Murray...
August 2019
Labour market and inequality
Working paper
Andrew Kerr and Martin Wittenberg
Traditionally, analysts of the South African labour market have used household survey data to describe earnings and employment in the post-Apartheid period. More recently, administrative data from the South African Revenue Service has been made...
May 2019
Labour market and inequality
In the media
A new paper from the SA-TIED programme by University of Cape Town researcher Jacqueline Mosomi was the subject of an article first appearing on BusinessLive. The work sheds light on the difference between what men...
2 April 2019
Labour market and inequality
Working paper
by Aroop Chatterjee
Understanding wealth inequality has unique significance in South Africa. The co-existence of extreme poverty and extreme wealth is starkly visible. Apartheid-era inequality has persisted despite more than 20 years of democracy. Much of the research...
March, 2019
Labour market and inequality