Income And Wealth Distribution In South Africa

Income inequality in south africa has deepened.

Income and wealth distribution in south africa. Based on their calculations credit suisse estimated that the total net wealth of south african adults amounted to us 0 8 trillion or r9 5 trillion in 2017. New tax and survey data suggest that 10 of the population own at least 90 95 of all assets in contrast to their earning only about 55 60 percent of all income. Moreover a given distribution is not a one dimensional magnitude. Presenting their paper measuring the distribution of household wealth in south africa at the university of cape town on 4 march gethin described the novel methods he and his co authors used to calculate wealth distribution a notoriously elusive quantity and showed that wealth inequality in south africa not only greatly exceeds income inequality but has not declined since 1994.

The poorest 50 of the population who still earn about 10 of all income own no measurable wealth at all. According to the latest figures from the world inequality database the top 1 of south african earners take home almost 20 of all income in the. Presenting their paper measuring the distribution of household wealth in south africa at the university of cape town on 4 march gethin described the novel methods he and his co authors used to. In this paper aroop chatterjee léo czajka and amory gethin estimate the distribution of personal wealth in south africa.

While broadly speaking the distribution is similar to the world as a whole the large majority of south africans 68 was estimated to fall into the lowest wealth category. Although south africa is known for its extreme income inequality the degree of wealth inequality is even greater. The top 10 own 86 of aggregate wealth and the top 0 1 close to one third. Income is distributed across racial groups income classes present and future generations and so on.

However south africa was revealed as one of the countries with one of the worst wealth distribution rates with the share of wealth held by the top 1 of earners doubling since the late seventies. Inequality manifests itself through a skewed income distribution unequal access to opportunities and regional disparities. South africa suffers among the highest levels of inequality in the world when measured by the commonly used gini index. Current poverty and income distribution in the context of south african history servaas van der berg t here is not one distribution of income but many.

It has as many dimensions.