South africa is acknowledged as having the highest gini coefficient in the world. Apr 25, 2018 graph and download economic data for gini index for south africa sipovginizaf from 1993 to 2014 about south africa, gini, and indexes. Gini coefficient definition, calculation and indias rankings. Much of the countrys inequality stems from apartheids effect on. Sep 24, 2019 in 2018, according to the gini coefficient, household income distribution in the united states was 0. Y is the cumulative distribution of the income variable, for i 0,z with y 00 and y 11. Serviceindustry jobs at the low end pay less now than in 1979, and highskilled jobs on the high end pay much moreceo compensation, in particular, has climbed into the. The reddishbrown kalahari desert with its northwestsoutheasttrending sand dunes and dry lakebeds stands out in this image of south africa. Inequality in south africa oxfam digital repository. Gini coefficient is widely used in fields as diverse as sociology, economics, health science, ecology, engineering and agriculture. In this case, the gini coefficient is 0 and it means there is perfect distribution of. According to the world bank, south africas gini coefficient of 0. In 2018, according to the gini coefficient, household income distribution in the united states was 0.
The gini index is the gini coefficient expressed as a percentage, and is. Mar 17, 2018 of the two gini coefficients, wealth is much more important than income. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1. This is represented by the gini coefficient2 value of 0. According to their individual focused method, in the 108 countries they studied, south africa had the worlds highest gini coefficient at 0. Everybody knows that south africans with higher incomes choose to be less dependent on public health and education than others. Empires of inequality stellenbosch university, department of. An examination of absolute poverty between 2006 and 2015 statistics south africa published by statistics south africa, private bag x44, pretoria 0001. A second look at measuring inequality in south africa 3 z z z i g. For example, in social sciences and economics, in addition to income gini coefficients, scholars have published education gini coefficients and opportunity gini coefficients. South africa has the worst gini coefficient in the world, according to bill rawson, chairman of the rawson property group. Gini coefficient measures for south africa by sex 2006, 2009, 2011 and 2015 40. This is a list of countries or dependencies by income inequality metrics, including gini coefficients.
South africa history, capital, flag, map, population. Given the poor quality of historical economic data, it is difficult to assess the. Pdf in 2000, thomas, wang, and fan published a paper calling for the application of the gini coefficient to educational attainment. After tracing the historical origin of inequality and describing the recent rise of the black middle. It was developed by the italian statistician corrado gini in 1912 definition. Gini coefficient of per capita income from statistics south africa, 2014, table 5, linked at 20052006 to series from 1993 from leibbrandt et al 2010a, table 5. After correcting for this, the world bank can report a much lower gini coefficient for sa than other studies. Xis the cumulative distribution of the population variable, for i 0,z with x 00 and x 11. Jun 14, 2017 in the united states between 1979 and 2007, the gini coefficient for pretax income, according to a study by the congressional budget office pdf, rose from 48 to 59. In economics, the gini coefficient, also known as the gini index or gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nations residents, and is the most commonly used measurement of inequality.
The gini coefficient is a ratio between 0 and 1, where 0 implies that each. Section 3 briefly examines the historical roots of inequality in colonial conquest and. The gini coefficient is a measure of income inequality in a country. What is the ideal gini coefficient if the end goal is a. Is south africa the most unequal society in the world. South africa is an uppermiddleincome economy one of only eight such countries in africa. Table 3 shows that the gini coefficient for south africa declined. The eradication of all forms of inequality was probably the most important aspiration for people predemocracy. The gini coefficient for gross equivalised household income is from the u. The gini coefficient also known as the gini index or gini ratio is a measure of differences in income. These include overcrowding, lack of text books and learning. Apr 26, 2017 the gini index is the most widely used measure of inequality see map above.
It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper variability and mutability italian. South africas gini coefficient is the highest in the world. Gini coefficient simple english wikipedia, the free. Stiglitzs 2012 book was called the price of inequality and sought to show the very high. A modified gini coefficient adel bosch, jannie rossouw, tian claassens and bertie du plessis school of development studies working paper no 58 september 2010 isbn 9781868406951. The gini coefficient is usually a number between 0 and 1 or 0 to 100.
Gini index measures the extent to which the distribution of income or, in some cases, consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. South africa s gini coefficient is the highest in the world news any discussion on low cost, subsidized housing in south africa has to take into account one startling fact. Another limitation of the gini coefficient is that it is not additive across groups, i. Gini index world bank estimate south africa world bank, development research group. A second look at measuring inequality in south africa. The gini index is the most widely used measure of inequality see map above. This work is published on the african unions website and oecd ilibrary, which gathers all oecd books, periodicals. According to the gini coefficient index a standard measure of income equality, the 10 most unequal countries in the world are.
Among the brics countries of brazil, russia, india, china and south africa, south africa has the highest income inequality index, a gini index of 0. South africas inequality is getting worse as it struggle. Current poverty and income distribution in the context of south african history. Income inequality trends in subsaharan africa undp. Unequal scenes portrays scenes of inequality in south africa from the air. The gini coefficient is described in a recent the economist article as an aggregation of the gaps between peoples incomes into a single measure. Rongxing guo, in understanding the chinese economies, 20. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. Of the two gini coefficients, wealth is much more important than income. The power of the gini index the formula pacific standard. The world bank and inequality in south africa roape. This is according to the inequality trends in south africa report released by stats sa. The gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the incomeand everyone else has no income. This report explores some of the linkages between growth, poverty, inequality and the labour market in postapartheid south africa.
From a historical perspective, africas growth performance has much. Gini index world bank estimate country ranking africa. Countries ranked by gini index world bank estimate africa. A second look at measuring inequality in south africa i a second look at measuring inequality in south africa. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. Shares of top 1 per cent in total gross income from wid. Pdf measuring educational inequality in south africa and. Africa stats sa in partnership with the southern africa labour and development research unit. Proportion of people living below 50% of median income per capita. Box 2 measuring poverty and inequality in south africa. Developed in 1912 by corado gini an italian statistician the gini coefficient is most prominently used as a measure of inequality of income or wealth distribution. Incomes are more equally distributed and fewer people are poor where social spending is high. Poverty trends in south africa statistics south africa. World and regional statistics, national data, maps, rankings world data atlas.
That public criticism inspired him to write a book a history of inequality in south africa specifically devoted to the subject of inequality within. In the united states between 1979 and 2007, the gini coefficient for pretax income, according to a study by the congressional budget office pdf, rose from 48 to 59. About 40% of south africans lived below the lower bound poverty line in 2015, up from 36. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of. Bureau of the census, income, poverty, and health insurance coverage in the united states. Applying the gini coefficient to measure inequality of water use in the olifants river water management area, south africa james cullis and barbara van koppen introduction benefits of water use. Of course, measuring inequality is multidimensional, which particularly applies to south africa. Measure of the deviation of the distribution of income among individuals or households within a country from a perfectly equal distribution.
It looks at the distribution of a nations income or wealth, where 0 represents complete equality and 100 total. Income inequality and limitations of the gini index. A value of 0 represents absolute equality, a value of 100 absolute inequality. Sep 30, 2015 depending on the variable used to measure inequality, the time period, and the dataset, south africas gini coefficient ranges from about 0. It is, however, recommended that more indepth studies are conducted to develop this concept further and to address some of the issues raised in this. Data and research on social and welfare issues including families and children, gender equality, gini coefficient, wellbeing, poverty reduction, human capital and inequality.
Pdf measuring educational inequality in south africa and peru. Since 1996, at the end of over twelve years of international sanctions, south africas gross domestic product almost. Gini coefficient definition, calculation and indias. It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper. The gini coefficient also known as the gini index or gini ratio d.
For them, selfless anc activists like mandela exist only in school textbooks. Income inequality among individuals is measured here by five indicators. South africa is known as one of the most unequal countries in the world, reporting a percapita expenditure gini coefficient of 0,67 in 2006, dropping to 0,65 in 2015. The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. South africas remotenessit lies thousands of miles distant from major african cities such as lagos and cairo and more than 6,000 miles 10,000 km away from most of europe, north america, and eastern asia, where its major trading partners are locatedhelped reinforce the official system of apartheid for a large part of the 20th century. According to the gini coefficient, as well as other inequality measurements, south africa ranks as one of the most unequal countries in the world. The economy of south africa is the second largest in africa, after nigeria.
As a regional manufacturing hub, it is the most industrialized and diversified economy on the continent. Graph and download economic data for gini index for south africa sipovginizaf from 1993 to 2014 about south africa, gini, and indexes. Distribution of grade 4 numeracy achievement by historical education department data. It is defined as a ratio with values between 0 and 1. South africa gini index world bank estimate the value for gini index world bank estimate in south africa was 63. Any discussion on low cost, subsidized housing in south africa has to take into account one startling fact. Gini coefficient income distribution inequality 20002017 opinion on organizations best suited to tackle income inequality the netherlands 2019 public opinion on ceos pay in the u. This finding is consistent with a 2012 study by the african development bank that namibia, south africa, angola, botswana, zambia, lesotho and swaziland count among the continents top. Also distinguishable are the westwardflowing orange river, south of the true desert. Gini coefficient measures for south africa by sex 2006, 2009, 2011 and 2015 40 figure 2. Extreme wealth inequality breeds more inequality and leads to a government that is controlled by a few, a plutocracy or oligarchy. Measure of income inequality in canada 20002018 statista. The gini indices for ten countries in southern africa shows a consistent pattern of economic growth coexisting side by side with growing levels of inequality. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Dimensions of inequality in health, gender and livelihoods 20 credits. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Southern africa most unequal region in africa united. Depending on the variable used to measure inequality, the time period, and the dataset, south africas gini coefficient ranges from about 0. South africa is an uppermiddleincome economy by the world bank one of only four such countries in africa alongside botswana, gabon and mauritius. If a 0, it means the lorenz curve is actually the line of equality. As the graph below shows, over the past 21 years this indicator reached a maximum value of 64.
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