The Gini index has been found to have a number of . First, the surveys can differ in many respects, including whether they use income or consumption expenditure as the living standard indicator. Hence, this book approaches the complex question of inequality not only from different regional perspectives, covering Africa, Asia, Europe, Latin and Northern America, but also from different disciplinary perspectives, namely cultural ... Using the most recent figures, South Africa, Namibia and Haiti are among the most unequal countries in terms of income distribution - based on the Gini index estimates from the World Bank . Corporate solution including all features. In South Africa, the richest 10% hold 71% of the wealth, while the poorest 60% hold just 7% of the wealth. According to the World Bank statistics that cover a period of 21 years from 1993 to 2014, the lowest score in terms of the Gini . The key to overcoming inequality is equalizing workers' wages and salaries The expansion of social grants has had a strong equalizing effect in the country, but this effect has been offset by the much bigger role that . You need a Single Account for unlimited access. The Gini coefficient is the measure of . * Professor & Head: Thabo Mbeki African Leadership Institute, Unisa . This factsheet is an update and attempt to highlight the complexity of ranking South African cities' high inequality rates. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting . Four facts about the mining industry (2019), Four facts about the post and telecommunications industry (2019). This paper applies the work of Berg and Ostry (2011) to the SACU region, to identify how inequalities have played a role in growth in each of these countries, and elaborates policy options to mitigate the effects of inequalities and foster ... This is according to the Inequality Trends in South Africa report released by Stats SA. Public provision of education has often been perceived as universal and egalitarian, but in reality it is not. South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. South Africans, of course, know something about income inequality. South Africa started the 1990s with already elevated inequality as the policy of apartheid excluded a large swath of the population from economic opportunities. Any discussion on low cost, subsidized housing in South Africa has to take into account one startling fact: South Africa has the worst Gini coefficient in the world, according to Bill Rawson, Chairman of the Rawson Property Group. As a Premium user you get access to the detailed source references and background information about this statistic. South Africa is an African nation located in the southernmost part of the African continent. A value of zero represents perfect equality and a value of 100 extreme inequality. Seminar paper from the year 2016 in the subject Economics - Case Scenarios, grade: 1,0, University of Wisconsin-Madison (Economics), course: Economics 477: Economic Development of Africa, language: English, abstract: This paper investigates ... South Africa's Gini coefficient for household income per capita was only reduced from 0.68 to 0.66 between 1993-2014. Finally, actual estimates of poverty and inequality in South Africa and the world are examined, with a particular focus on trying to assess the trend in recent years. The Gini index or Gini coefficient is a statistical measure of distribution developed by the Italian statistician Corrado Gini in 1912. According to the latest governmental data from 2019, the Gini coefficient in South Africa was 0.65 points in 2015, with lesser inequality in . Quick Analysis with our professional Research Service: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Facebook: number of monthly active users worldwide 2008-2021, Smartphone market share worldwide by vendor 2009-2021, Number of apps available in leading app stores 2021, Research Expert covering the economy and society on Egypt, South Africa, and Ethiopia, Profit from additional features with an Employee Account. This is borne out by the significant shift in the distribution amongst quintiles away from the top quintile to the middle 40% in particular, though the bottom 40% of the distribution have also gained Distribution of family income - Gini index measures the degree of inequality in the distribution of family income in a country. The most striking increase in inequality is found in South Africa and the Central African Republic with Gini coefficients rising from 58 to 67 in 6 years (2000-2006) and 43 to 56 in 5 years (2003-2008) respectively. Wage inequality as measured by the Gini coefficient increased in South Africa between 1994-2019. With a Gini coefficient of .63 South Africa has long been identified as the world's most unequal society. South Africa's Gini coefficient was calculated at 0.69 in 2011 and this was based on income data (per capita including salaries, wages and social grants) (StatsSA, 2014). The Gini index is a relative measure that fails to capture absolute differences in income. . The Gini index provides a convenient summary measure of the degree of inequality. Graph and download economic data for GINI Index for South Africa (SIPOVGINIZAF) from 1993 to 2014 about gini, South Africa, and indexes. The Gini . Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. South Africa remains a dual economy with one of the highest, persistent inequality rates in the world, with a consumption expenditure Gini coefficient of 0.63 in 2015. A high Gini coefficient indicates high inequality. As a benchmark, 0.39 is the Gini coefficient in Iceland before redistribution. Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Insights into the world's most important technology markets, Health Market Outlook Please create an employee account to be able to mark statistics as favorites. With a Gini coefficient of 0.63 in 2015, the report described South Africa as . As the graph below shows, over the past 21 years this indicator reached a maximum value of 64.80 in 2005 and a minimum value of 57.80 in 2000. Based on the results of a major collaborative research project led by the African Economics Research Consortium. The earnings distributions starkly depict the heavily racialised inequality in the South African labour market. A paid subscription is required for full access. The country is facing high-income inequality with an average of 0.65 Gini coefficient. Zambia - 58.1. You only have access to basic statistics. Data on the distribution of income or consumption come from nationally representative household surveys. All provinces, except Limpopo and Eastern Cape, experienced a decline in inequality from 2006 to 2015. The largest contributor to overall income inequality came from the labour market at 74,2%. The Gini coefficient metric South Africa has attained coupled with the high level of unemployment makes it likely that social unrest will occur again in the future unless there is urgent . World Bank staff have made an effort to ensure that the data are as comparable as possible. After 27 years, inequality has deepened with the Gini coefficient now being 0.63. . The bottom 60% of households depend more on social grants and less on income from the labour market. At that time, the Gini coefficient was high at 0.59. South Africa remains the most unequal country in the world, with a Gini coefficient of 0.63 in 2015. Limitations of the Gini index. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. South Africa's Gini coefficient is the highest in the world. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from, Show sources information In particular, the share of household income by the highest income decile Consumption is usually a much better welfare indicator, particularly in developing countries. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. South Africa is one of the most unequal societies in the world with a Gini coefficient (where zero is perfect equality and one is perfect inequality) of a staggering 0.66, more than double the . Since 2006, there has been a greater dependence on social grants and less reliance on income from the labour market in the bottom deciles. Show publisher information, The source added the following note: ''The Gini coefficient has been a commonly used measure of inequality in South Africa. wealth, coefficients from regression analysis 52 Figure 81: The relationship between intergenerational mobility and . The Gini coefficient is the measure of . South Africa has the highest Gini coefficient in the world, making it the most unequal society - and the COVID-19 pandemic has deepened this crisis. Ans. SamaraColon32. However, the DRC's data is from 1994. In, Statistics South Africa. percent in 2012 (Statistics South Africa, 2013). Advertisement. South Africa's Gini—an index that measures inequality—has increased further in the early 2000s and has remained high ever since. Are you interested in testing our corporate solutions? In contrast, there was greater reliance on income from the labour market in the top deciles. The Gini coefficient amongst Coloureds declined from 0,60 in 2006 to 0,58 in 2015. [3] Overcoming Poverty and Inequality in South Africa, 2018, published by the World Bank, states on page xv that "… the country (ie. This paper analyzes the determinants of high unemployment in South Africa by studying labor market dynamics using individual level panel data from the Quarterly Labor Force Survey. Even the Davis . Another economic measure of inequality is the Lorenz Curve which is a 0.25- means its income is very equal in comparison to South Africa- 0.65- more unequal. Found insideWithout overstressing the 'mistakes' of such elites, this book contextualises Africa's wealth outflow within a stagnant but volatile world economy. The full statistical release is available on the Statistics South Africa website: www.statssa.gov.za YOU MIGHT ALSO LIKE. Found inside – Page 14South Africa's Gini coefficient , which measures inequality , is much worse than that of most countries with a similar per capita Gross National Product ... The GDP data is based on data from the . Wherever possible, consumption has been used rather than income. '', Total population of South Africa 2019, by ethnic groups. Please do not hesitate to contact me. Therefore, the closer the Gini coefficient gets to 1, the more unequal the population is. To put things into perspective, the mean real earnings between 2011 and 2015 amongst employed black Africans was R6 899 (real earnings) per month. It is thus noted that in order to achieve the target set out in the NDP, great emphasis will need to be placed on addressing the structural issues propagating . UNDP (2014, 47) noted that the country's Gini coefficient was calculated at 0.69 in 2011, up from 0.63 in 2009. Census Rank City Gini Index; 1: San Juan, Puerto Rico: 0. While the richest have become richer, the wage of the poorest 50% has not increased proportionally. Income Inequality. Gini coefficient in South Africa from 2006 to 2015 [Graph]. I thus period spend some time investigating the extent to which the inequality trends from the QLFS data are reliable. The reduction of poverty, in all its dimensions, was the goal. The volume will be of interest to researchers, graduate students, and to the technical staff of international agencies and government ministries. While many other countries were able to reduce inequality during the 2000s, South Africa could not (IMF, 2020). For more information and methodology, please see PovcalNet (http://iresearch.worldban. Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. Where the original data from the household survey were available, they have been used to calculate the income or consumption shares by quintile. African countries had the highest pre-tax Gini coefficients in 2008-2009, with South Africa the world's highest, variously estimated to be 0.63 to 0.7, although this figure drops to 0.52 after social assistance is taken into account, and drops again to 0.47 after taxation. Based on the Gini coefficient, South Africa is the most unequal country in the world among those for which data are available, according to the World Bank. South Africa' s overall Gini coefficient for . New, Insights into the world’s most important health markets, Figures and insights about the advertising and media world, Everything you need to know about the industry development, Find studies from all around the internet. W e can thus further . Depending on the variable used to measure inequality, the time period, and the dataset, South Africa's Gini coefficient ranges from about 0.660 to 0.696. Exam 2. Another limitation of the Gini coefficient is that it is not additive across groups, i.e. valeriechiu06. Stats SA is in the process of updating its database of all users. 8 terms. Thus, country-level Gini coefficients cannot be aggregated into regional or global Gini's, although a Gini coefficient can be computed for the aggregate. Otherwise, shares have been estimated from the best available grouped data. In 2018 the World Bank estimated that South Africa had a consumption expenditure Gini coefficient of 0.63 in 2015, an increase from 0.61 . The differences in annual mean and median expenditures by province show the reality of interprovincial inequality. 37 terms. Prof Kammila Naidoo is a sociologist and . Lesotho - a small, mountainous kingdom of 2.1 million people completely enclaved in South Africa - provides an interesting case study. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual. The Gini coefficient - a globally accepted measure of income inequality - for South Africa, as listed by The World Bank as well as the Central Intelligence Agency, is the highest in the world. Inequality of opportunity, both within and among nations, sustains extreme deprivation, results in wasted human potential and often weakens prospects for overall prosperity and economic growth, concludes the 2006 World Development Report. African countries had the highest pre-tax Gini coefficients in 2008-2009, with South Africa the world's highest, variously estimated to be 0.63 to 0.7, although this figure drops to 0.52 after social assistance is taken into account, and drops again to 0.47 after taxation. This is because unlike income, which has no upper limit, piped water access cannot exceed access within a dwelling and water use also has practical limitations, although not as strict. Its GINI coefficient-a standard for measuring income inequality-is one of the highest in the world. One of the key focuses of the report is inequality, with the review finding that South Africa is currently the most unequal society in the world in terms of the Gini coefficient. The distribution of income is typically more unequal than the distribution of consumption. This is borne out by the significant shift in the distribution amongst quintiles away from the top quintile to the middle 40% in particular, though the bottom 40% of the distribution have also gained In the US and Latin America, Gini coefficients after redistribution are above 0.39. South Africa GINI index was 57.7 % in 2018, up by 0.00% from the previous year. Individuals living in Limpopo and Eastern Cape had the lowest annual mean and median expenditures for all four data points. Correspondingly, there is insufficient understanding of the determinants of internal spatial inequality. This volume attempts to answer the questions posed above, drawing on data from twenty-five countries from all regions of the world. Statistical Concept and Methodology: The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Income distribution and Gini indexes for high-income economies are calculated directly from the Luxembourg Income Study database, using an estimation method consistent with that applied for developing countries. South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. The Gini Coefficient ranges between 0.0 and 1 - perfect income inequality would have Gini coefficient of 1 and perfect equality would be 0. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. In 2012, Africa Check found that Cape Town had the lowest inequality - by a small margin - of South Africa's metros, as measured by the Gini coefficient. South Africa - GINI index (World Bank estimate) The value for GINI index (World Bank estimate) in South Africa was 63.00 as of 2014. "Gini Coefficient in South Africa from 2006 to 2015. facts. Leverage our AI Workflow Tools and online data environment to manipulate, visualize, present, and export data. It is possible for two different Lorenz curves to give rise to the same Gini coefficient. Gini index (World Bank estimate) - South Africa World Bank, Development Research Group. This book provides academics, political practitioners and civil society activists with a range of ideas on how to drive back inequality. It will be of interest to those who study political economy, development economy and labour economics. General Comments: The World Bank’s internationally comparable poverty monitoring database now draws on income or detailed consumption data from more than one thousand six hundred household surveys across 164 countries in six regions and 25 other high income countries (indu, Note: This page was last updated on December 28, 2019, Home | About | Search | Site Map | Blog | Indicadores en Español. Drawing on the findings and conclusions of the individual chapters, the book distills together the key lessons and also puts forward recommendations for policy and practice. The Gini coefficient for income in South Africa is about 0.67, which is very, very high. The distribution data have been adjusted for household size, providing a more consistent measure of per capita income or consumption. The coefficient ranges from 0 to 1, where 0 represents perfect equality (all individuals have the same income) and 1 indicates perfect inequality (where one person has all the income and the rest have none). Incidence of growth 56 . While labour market income is overwhelmingly the largest contributor to income inequality when compared to other income sources, social grants and remittances have played a crucial role in reducing the income inequality gap between the bottom and top deciles over the years in South Africa. The Gini index gives information on the distribution of income in a country. Inequality: The Gini coefficient for disposable income measures the extent to which the distribution of disposable income among households deviates from perfect equal distribution. The Gini coefficient metric South Africa has attained coupled with the high level of unemployment makes it likely that social unrest will occur again in the future unless there is urgent intervention by the state. Top income shares: Shares of top 1 per cent in total gross income from WID.world (excluding capital gains . Real (Monthly) Earnings Gini Coefficient & Palma Ratio Over Time (Statistics South Africa 2019, Page 65) Note that the Palma ratio is another measure of inequality, it is the ratio of the richest . Between 1993-2019 the richest 10% earned, on average, about 20 times that earned by the poorest 10% — this gap has remained quite stable over time. This is according to the Inequality Trends in South Africa report released by Stats SA. Abstract: The authors propose a modification to the conventional approach of decomposing income inequality by population sub-groups. October 13, 2019. If you're not sure what that means, the Gini coefficient looks at the distribution of a nation's income or wealth, where 0 represents complete equality and 100 total inequality. Outlining areas such as employment rates, utilization of natural resources, and regional impacts, this collection of research is an excellent tool for scholars, academics, and professionals looking to expand their knowledge on today s ... A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting . South Africa. (October 13, 2019). South Africa is the top country by GINI index in the world. The interactive visualization presents the same idea in a different view. Gini Index coefficient - distribution of family income. An overview of many currently topical issues around food and agriculture, with particular emphasis on their implications for development. The reasons for and causes of South Africa's high Gini coefficient were identified, with the apartheid legacy and the present government's governance style as the two greatest contributors.. What is the most equal country in the world? Found insideThis report examines the links between inequality and other major global trends (or megatrends), with a focus on technological change, climate change, urbanization and international migration. Even the Davis Tax Committee references the Gini coefficient as a basis for considering a wealth tax, although it ultimately rejects this option (for now). Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. South Africa's Gini coefficient however, appears to be worsening. Table 3 shows that the Gini coefficient for South Africa declined markedly during the 1990s, indicating an improvement in the overall distribution. However, see Income inequality and limitations of the Gini index: the case of South Africa, HSRC Review, November 2014. "Gini coefficient in South Africa from 2006 to 2015." In Northern Europe, for example, within-country Gini coefficients after taxes and transfers are below 0.28. A consistent increase in average asset scores for black Africans led to a decline in asset inequality between groups. Because the underlying household surveys differ in methods and types of welfare measures collected, data are not strictly comparable across countries or even across years within a country. " Income Inequality Trends in sub-Saharan Africa: Divergence, Determinants, and Consequences is a groundbreaking United Nations Development Programme (UNDP) study that provides policy guidance to reduce income inequality in sub-Saharan ... "The COVID-19 pandemic has exposed how fractured South Africa's democracy is, and just how unequal we are as a society. South Africa . South Africa is known as one of the most unequal countries in the world, reporting a per-capita expenditure Gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. South Africa is now recognised by Oxfam International as "the most unequal country on earth and significantly more unequal than at the end of apartheid" On the other hand, as the Gini coefficient approaches 0, the more equal the population becomes. South Africa is also one of the most consistently unequal societies in the world, with a Gini coefficient of 0.69. Furthermore it is possible for the Gini coefficient of a developing country to rise (due to increasing inequality of income) while the number of people in absolute poverty decreases. No adjustment has been made for spatial differences in cost of living within countries, because the data needed for such calculations are generally unavailable. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population. Please authenticate by going to "My account" → "Administration". South Africa) had a Gini coefficient of 0.63 in 2015, the highest in the world…". South Africa: The incidence of household poverty stands at 57 percent and the unemployment rate at 27 percent. Directly accessible data for 170 industries from 50 countries You need at least a Single Account to use this feature. According to World Bank statistics covering the period from 1993 to 2014 the lowest score in terms of the Gini coefficient post democracy in 1994 and at any other time within that range was in 2000 at 57.8; however, over time South Africa has progressively scored poorly in terms of inequality. Despite this increase, within-group asset inequality for black Africans has increased. The gini . Eastern Cape was the most unequal province in 2015. Despite having experienced declines in income inequality in 2009 (0,53) and 2011 (0,50), the Gini coefficient for Indian/Asians was 0,56 for 2006 and 2015. Whites, in contrast, earn substantially higher wages than all the other population groups. Gini coefficient. In addition to having the worst employment outcomes, black Africans also earn the lowest wages when they are employed. These figures indicate that overall inequality, measured at a national level, has declined between 2006 and 2015. The Gini coefficient is a frequent measure of inequality, which obtains the value of zero if all resources are distributed equally and a value of 100 if one person has all resources. Sources: Overall inequality: Gini coefficient of per capita income from Statistics South Africa, 2014, Table 5, linked at 2005/2006 to series from 1993 from Leibbrandt et al (2010a, Table 5.17), linked at 1991/1993 to estimates for 1975, 1991 and 1996 of Whiteford and van Seventer (2000). As soon as this statistic is updated, you will immediately be notified via e-mail. A systematic examination of the interaction between class structures, social stratification and ethnic differentiation, this book sheds light on the manner in which the resulting social structures produce different levels of economic ... Black Africans reported the largest increase in the average number of assets owned. The Gini coefficient measures how far the actual Lorenz curve for a society's income or wealth is from the line of equality. Profit from additional features by authenticating your Admin account. "Gini coefficient in Nigeria as of 2019, by area." In 1820, the Gini coefficient was 0.50 and in 1980 and 1992, the figure was 0.657. . In addition, the definitions of income used differ more often among surveys. According the Gini coefficient, South Africa has the highest levels of inequality compared to any other country in the world! How is the Gini Coefficient useful? Namibia - 59.2. The ideal entry-level account for individual users. Gini Index coefficient - distribution of family income. The more nearly equal a country's income distribution, the lower its Gini index, e.g., a Scandinavian country with an index of 25. ; high inequality rates inequality came from the SWIID web site ( 2014b... Insufficient understanding of the Gini coefficient in South Africa declined markedly during the 1990s with already elevated as... By quintile the unemployment rate at 27 percent between 0.0 and 1 - perfect inequality... Representative household surveys income inequalities equality would be 0 a population Africa 2006-2015 by! 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