Despite South Africa’s need for inclusive economic growth, we find that the income trajectories of the rich continue to diverge from the rest of the income distribution. We combine household survey data and tax data (which, unlike household survey...
In summer 2020 the SOUTHMOD team set out, with partners, to analyse the impact of government policies on protecting households from getting poorer and...
Although the effect of fiscal drag is well studied in the industrialized world, empirical evidence from developing economies remains limited. Against this backdrop, this study aims to explore the effect of fiscal drag on income distribution and work...
This study analyses the impacts of indirect tax benefits policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes...
This document is part of a series of technical notes describing the compilation of a new companion database that complements the UNU-WIDER World Income Inequality Database. It aims at facilitating the analysis of inequality as well as progress in...
This paper presents preliminary evidence of the annual global income distribution since 1950 using a new integrated dataset that aggregates standardized country income distributions at the percentile level estimated from various sources in the World...
In this paper we explore South Africa’s personal income tax system using two microsimulation models. The first, SAMOD, simulates personal income tax and social benefits using a dataset derived from the nationally representative National Income...
This document is part of a series of technical notes describing the compilation of a new companion database that complements the World Income Inequality Database (WIID). This technical note describes the construction of the global distribution...
The purpose of this article is to provide new evidence about the sources of regional income inequalities in Brazil along the wage distribution, taking into account the regional differentials in purchasing power. We use a unique and recent regional...
Despite major public finance reform efforts over the last decade, Myanmarese public finances continue to be characterized by relative weakness in revenue collection, budget execution, and long-term sustainability. Myanmar is therefore in need of...
Myanmar has, in recent years, strengthened its focus on human capital as a development pillar, and introduced legislation and adopted conventions on child labour. But child exploitation continues, including use of forced labour by the military and...
This paper investigates some major changes in the wealth distribution in China using the data from two national household surveys conducted in 1995 and 2002. The surveys collected rich information on household wealth and its components, enabling a...
This paper explores the impact of the first wave of the COVID-19 pandemic in South Africa on income poverty and inequality in South Africa. Using a static tax–benefit microsimulation model with input datasets that were adjusted to reflect people’s...
We consider two vertical links between informal- and formal-sector firms and study their implications. In one case, the final products produced by the formal- and informal-sector firms are vertically differentiated in terms of quality, and the size...
Even though poverty and inequality have been of overriding concern in South Africa’s development policies and programmes since its democratization in 1994, measures of poverty, inequality, and related phenomena in the country do not show a clear...
Despite South Africa’s need for inclusive economic growth, we find that the top income percentiles continue to diverge from the rest of the income distribution. We compare household survey data and tax data (which, unlike household survey data...
This paper analyses the distributional effects of the COVID-19 pandemic and related tax-benefit measures in 2020 in a cross-country comparative perspective for five African countries: Ghana, Mozambique, Tanzania, Uganda, and Zambia. We first estimate...
This note has set out several data processes that have been undertaken using the income data in dataset(s) that underpin SAMOD. Section 1 describes various data-cleaning steps that were undertaken when preparing the LCS 2014/15 as an underpinning...
This paper examines the nature and extent of global and regional income distribution and inequality using the most recent country level data on income distribution drawn from World Bank and UNU-WIDER studies for the period 1993-2000. The methodology...
9 December 2013 S. Subramanian 1 Introduction It appears that the World Bank is planning to maintain and disseminate systematic information on a...
Luis-Felipe Lopez-Calva [1] The concept of social class and specifically middle class, has been widely discussed in sociology and other social...
Rolph van der Hoeven and Peter van Bergeijk One of the most important trends that emerged since the launch of the Millennium Development Goals (MDGs)...
The presence of European colonial powers in Africa has left a long-lasting legacy that has severely impacted their development trajectories. But what are the lingering effects of colonization on economic performance, in particular with regard to...
If uncertainty exists over the exact location of the poverty line or over which measure to use to compare poverty between distributions, one may want to check whether poverty dominance holds. We develop a consistent statistical test to test the null...
This paper illustrates how the use of microeconometric techniques can be used to uncover the micro dynamics behind macro shocks. Using Mexican micro data we find out that—controlling for everything else—between 1994 and 1998 returns to personal...
This paper discusses the emergence of two new middles since the Cold War, namely middle-income countries and people living above absolute poverty but below a security-from poverty-line. The paper sets out what has happened. It is argued that although...
This paper introduces two composite indices of globalization. The first is based on the Kearney/Foreign Policy magazine and the second is obtained from principal component analysis. They indicate the level of globalization and show how globalization...
The impact of globalization on global and local inequality is hotly debated in the recent literature. This study considers the separate issue of the impact of globalization on poverty through quantifying explicitly the responsiveness of poverty to...
Using administrative tax records from South Africa for the period 2011–14, I find that firm wage premia explain 25 per cent of the total wage variance, 60 per cent of the gender wage gap, and 40 per cent of the gap between workers in the middle and...
This paper presents a simple model to show how distributional concerns can engender social conflict. We have a two period model, where the cost of conflict is endogenous in the sense that parties involved have full control over how much conflict they...
Using new household survey data for 1995 and 2002, we investigate the size of China’s urban-rural income gap, the gap’s contribution to overall inequality in China, and the factors underlying the gap. Our analysis improves on past estimates by using...
There are two main types of data sources of income distributions in China: household survey data and grouped data. Household survey data are typically available for isolated years and individual provinces. In comparison, aggregate or grouped data are...
This paper argues that the regional income gap of China is endogenously determined by its long-term economic development strategy. Development strategies can be broadly divided into two mutually exclusive groups: (i) the comparative advantage-defying...
While the average level of income per capita has increased in China rapidly, income inequality is becoming a more serious problem that may threaten social stability and the sustainability of economic development. This paper examines the existence in...
South Africa has the highest rate of measured inequality in the world. Often thought to be a legacy of the apartheid system, inequality in South Africa has stubbornly persisted. South Africa’s position as highest inequality country in the world has...
This study discusses the evolution of personal wealth in transition economies. While data availability is still a problem, the available indirect evidence suggests privatization has resulted in an increase in personal wealth but also in personal...
This paper analyses the impacts of indirect tax policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes to the...
This paper uses the data gained from an income categorization experiment for five shapes of income distributions to investigate background context effects, relative deprivation, range-frequency theory to explain background context effects, individual...
Typical welfare and inequality measures are required to be Lorenz consistent which guarantees that inequality decreases and welfare increases as a result of a progressive transfer. We explore the implications for welfare and inequality measurement of...
We analyse the Indian National Sample Survey data spanning the period 1987/88–2011/12 to uncover patterns of transition into and out of different classes of consumption distribution. At the aggregate level, income growth has accelerated, accompanied...
This paper reviews Finnish economic history during the 'long' twentieth century with a special emphasis on policies for equity and growth. We argue that Finland developed from a poor, vulnerable, and conflict-prone country to a modern economy in part...
Alternative approaches to modelling distributional and welfare effects of changes in policy and the economic environment in developing and transition countries are surveyed. Microsimulations range from pure accounting approaches to models with...
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