In this paper we study and analyse household income mobility dynamics
among Africans in South Africa's most populous province between 1993
and 1998. Compared to industrialized and most developing countries,
mobility has been quite high, as one would have expected after the
transition in South Africa. This finding is also robust to various ways
to control for measurement error. When disaggregating the sources of
mobility, we find that demographic changes and employment changes
account for a most of the mobility observed which is related to rapidly
shifting household boundaries and a very volatile labour market in an
environment of high unemployment. In a multivariate analysis, we see
that transitory incomes play a large role. We also find three types of
poverty traps, associated with large initial household size, poor
initial education, and poor initial employment access.
Income Mobility and Household Dynamics in South Africa, presented at Staying Poor: Chronic Poverty and Development Policy, Institute for Development Policy and Management, University of Manchester, 7-9 April 2003. Chronic Poverty Research Centre (CPRC), Manchester, UK, 38 pp.
Income Mobility and Household Dynamics in South Africa.