Section 5

Contents

Income inequalities
Expenditure patterns
Comparisons between 1990 and 1995
Conclusions 
References

Summary and conclusions

This study has demonstrated that income distribution in South Africa is highly unequal, and that this inequality is vividly reflected in household expenditure patterns.

Income inequalities

Incomes in South Africa are unevenly distributed by race and gender, by urban and non-urban areas of residence, and by province.

Expenditure patterns

Expenditure patterns in South Africa show a great deal of variation among households in the various quintiles.

Since food expenditure forms such a high proportion of the spending in poor households, we examined food expenditure in more detail.

Comparisons between 1990 and 1995

Conclusions

The effects of past apartheid policies are evident when examining the disparities in incomes. Africans generally, and non-urban African women and men in particular, are the poorest groups in the country.

As the new government addresses the inequalities of the past, it will be able to measure change in income distribution through studies such as this one.

In particular, it will be able to monitor income disparities between the poor and the more affluent in the 12 main urban areas in the country. Indeed, this survey, on which weights for the CPI are based, can be used for a variety of other purposes.

Monitoring of change in income distribution has already been achieved in the 12 main urban areas over the time period between 1990 and 1995. In five years’ time, when the next income and expenditure survey is conducted, it will be possible to examine change in income distribution throughout the country, rather than only in 12 main urban areas.

References

Central Statistical Service, 1992. Survey of household expenditure, 1990. (No.01-11-01 [1990]). Pretoria: CSS.

Hirschowitz, R and Orkin, M, 1996. Living in South Africa. Selected findings of the 1995 October household survey. Pretoria: Central Statistical Service.

Todaro, M.P, 1989. Economic development in the third world. New York: Longman.

World Bank and SALDRU, 1995. Key indicators of poverty in South Africa. Pretoria: Ministry of the Office of the President.