Working Paper
Income inequality in South Africa

We use individual-level tax administrative data to estimate personal income inequality among the tax-compliant population in South Africa over the period 2011–21. 

Our results indicate that inequality of this population rose slightly over the period, with the Gini coefficient increasing from 0.64 to 0.66. The aggregate inequality metrics mask some notable changes in real incomes driven by relatively stronger real income growth at both the top and bottom ends of the distribution and very sluggish real income growth in the middle deciles. 

We also exploit the longitudinal nature of the data to conduct a preliminary examination of income mobility across this income distribution, particularly within the top income groups. We find low levels of upward mobility, driven by very little upward mobility into the top decile and low downward mobility out of this decile, particularly for those in the top percentile in 2011.