Income Inequality Trends in sub-Saharan Africa: Divergence, Determinants, and Consequences
A groundbreaking United Nations Development Programme (UNDP), this study provides policy guidance to reduce income inequality in sub-Saharan Africa. The 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs) underscore the need to address broad inequalities in their quest to ‘leave no-one behind.’ UNDP's Regional Bureau for Africa asserts that inequality levels, trends,determinants and consequences must be analyzed closely – producing a holistic policy approach which matches the integrated and indivisible nature of the 2030 agenda. It is only through addressing the challenge of inequality that progress towards achieving poverty reduction, to be specific, and the SDGs in general, can be accelerated.
Funder: UNDP RBA
Chapter 1: Introduction, Motivation and Overview (by Bhorat, H., Conceição, P., Cornia, G.A., and Odusola, A.)
Chapter 5: Understanding the Determinants of Africa’s Manufacturing Malaise (by Bhorat, H., Steenkamp, F. and Rooney, C.)
Chapter 6: Resource Dependence and Inequality in Africa: Impacts, Consequences and Potential Solutions (by Bhorat, H., Chelwa, G., Naidoo, K., and Stanwix, B.)
Chapter 8: Social Protection and Inequality in Africa (by Bhorat, H., Cassim, A., Ewinyu, A. and Steenkamp, F.)
Chapter 17: Conclusions and Policy Recommendations (by Bhorat, H., Conceição, P., Cornia, G.A., and Odusola, A.)
Year Completed: 2018
The 4th Industrial Revolution
Rapid technological advances in robotics, artificial intelligence and machine learning threaten many jobs, especially those in low-skilled sectors. In order to appropriately mitigate potential employment losses as a result of rapid technological advances (often referred to as the 4th Industrial Revolution), a greater understanding of the extent of the risks posed to employment by adoption of new technologies is required. The DPRU embarked on research with a key focus of understanding the implications of the 4th Industrial Revolution for employment in South Africa; Evaluating the opportunities and risks of the 4th Industrial Revolution; and examining the number of jobs at risk of automation in middle-income countries; and in South Africa.
Project Outputs: Papers expected 2019
Year Completed: 2018
Labour Regulation in South Africa – Strike Activity and Minimum Wages
The project is focused on two interlinked labour market issues in the South African economy, namely that of the size, shape and consequence of strike activity in the South African economy, and secondly, the economic consequences of sectoral minimum wage laws and the extent of minimum wage violation. This first component hopes to inject a more objective and informative understanding around the nature of strikes and strike activity in South Africa. In terms of the second component of the research agenda, three core areas arise: Firstly, the project will describe and estimate the medium- to longer-run effects of South Africa’s minimum wage laws. Secondly, using a new technique for measuring minimum wage violation, the researchers hope to examine the evolution of minimum wage violation, particularly in relation to minimum wage adjustments over time. Finally, an area surprisingly overlooked in this literature, is that focusing on the impact of minimum wage legislation on household poverty levels.
Project Outputs: Papers expected in 2019.
Low Income Countries (LIC) in SubSaharan Africa
The paucity of LIC labour market data, its varying quality, and the lack of baseline information makes it essential to provide a broad descriptive and basic econometric overview of a sample of LIC labour markets in sub-Saharan Africa. Specifically, we developed a series of papers that focus on a sample of four African LICs: Kenya, Uganda, Zambia and Tanzania, describing and profiling their labour market in a systematic and consistent way.
Research Project on Employment, Income Distribution and Inclusive Growth
: The DPRU is responsible for the Inclusive Growth theme, and we are involved in an infrastructure data project (related to the income and expenditure surveys), and papers covering the informal economy, and risk mitigation through micro-insurance, asset poverty and other gaps in current research.
Funder: National Treasury through SALDRU
Project Outputs: Bhorat, H. and Naidoo, K. (2017). Exploring the relationship between crime-related business insurance and informal firms’ performance: a South African case study. REDI3x3 Working paper #25; February 2017.
Year Completed: 2016