Colonial Rule, Apartheid and Natural Resources: Top Incomes in South Africa 1903-2007

FACUNDO ALVAREDO; ANTHONY B. ATKINSON

CEPR Discussion Paper Series

CEPR-Centre for Economic Policy Research

Año: 2011 p. 1 - 65

0265-8003

There have been important studies of overall income inequality and of poverty in South Africa. In this paper, we approach the subject from a different direction: the extent and evolution of top incomes. We present estimates of the shares in total income of groups such as the top 1 per cent and the top 0.1 per cent, covering, with gaps, more than a hundred years. In order to explain the observed dynamics, here we consider three factors: the transfer of political authority, racial discrimination, and the rich mineral resources. The estimates of top income shares for recent years bear out the picture of South Africa as a highly unequal country.  JEL Classification: D3, H0 and N3