Income mobility in a high-inequality society: Evidence from the first two waves of NIDS

Abstract

The study of income inequality and income mobility has been central to understanding post-apartheid South Africa's development. This paper uses the first two waves of the National Income Dynamics Study to analyse income mobility using longitudinal data, and is the first to do so at a nationally representative level. We investigate both the correlates and root causes of moving up and down the income distribution over time. Using both absolute and relative changes as reference points, we highlight some of the factors associated with South Africans moving into and out of poverty.