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Decomposing the impact of human capital on household income inequality in South Africa

Is education a useful measure

Bibliographic Data

ID21541007
AuthorsTamaryn Jean Friderichs (0000-0003-3589-668X, Rhodes University, corresponding author), Gavin Keeton (Rhodes University), Michael Rogan (0000-0003-1695-8179, Rhodes University)
Year2023
Volume40
Issue5
Pages997-1013
Publication date2023-09-03
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueDevelopment Southern Africa (JOURNAL)
Journal identifiersISSN: 0376-835X • E-ISSN: 1470-3637
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/0376835x.2022.2163228
OpenAlexW4317211356
LanguageEN
Citations received4
References cited33

Human capital (HC) has increasingly been identified as a driver of economic development, with the potential to reduce income inequality, which, in South Africa, originates in the labour market. HC is, however, a complex concept to measure. This study uses Fields’ regression-based decomposition method to analyse the relationships between income inequality and HC in South Africa. The Fields method allows for the analysis of the impact of several factors contributing to HC on the distribution of a measure of income. Data from the National Income Dynamics Study (NIDS) wave 1 (2008) and 5 (2017) are used. The findings suggest that increasing educational attainment, through improved school quality for all, would likely play a key role in reducing income inequality in South Africa. Furthermore, the large role of education attainment in explaining household income inequality supports the use of education attainment as a proxy for HC in South Africa

Demographic economics · Development economics · Economic growth · Economic inequality · Economics · Educational attainment · Gross income · Human capital · Income distribution · Income inequality metrics · Inequality · Labour economics · Net national income · Public economics · Income, Poverty, and Inequality · Intergenerational and Educational Inequality Studies · Poverty, Education, and Child Welfare

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Unique citing works4
Citations per year2
Citation span2024 - 2026 (3)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 4
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