
Blog
The richer your neighbours, the more you borrow – the case of South Africa
Research on how income inequality affects borrowing behaviour reignited after the 2008 global recession. One prevailing theory is that rising income...
While the literature offers rich insights and employs diverse data and methods in considering socio-economic inequality, it is notable that existing studies rely almost exclusively on relative measures of inequality, rather than absolute measures. There is strong suggestive evidence that absolute inequality matters more for many people at all levels of society; one prominent illustration being the core concern in the UN Sustainable Development Goals (SDGs) of leaving no one behind in absolute poverty.
The @EQUAL project will focus on four major areas of research:
It combines cross-national and within-country analysis, exploits both existing datasets and collects new data - through surveys and lab-in-the-field experiments in two country case studies – to reinvent the existing literature on economic inequality by shifting the focus, momentarily, from relative measures of inequality to absolute measures, performs cross-national and intertemporal analysis of the impact that inequality has on economic growth, human development, and governance, and takes a deep dive into two case studies of how inequality impacts these factors, and is impacted by them —in Mozambique and Vietnam.
All papers, data, and opinion pieces relating to this project, as well as opportunities to engage, will be available on this webpage and at the Development Economics Research Group.
This project centrally addresses SDG 10. Components of it speak directly to SDG 16 (effective, accountable, and inclusive institutions). The project will contribute to the global effort by reconsidering core findings and associated policy recommendations in the fields of economics and political science in light of the absolute measures of inequality we explore.