Wealth Inequality in South Africa—The Role of Government Policy

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dc.contributor.authorFortuin, Marlin Jason
dc.contributor.authorGrebe, Gerhard Philip Maree
dc.contributor.authorMakoni, Patricia Lindelwa
dc.date.accessioned2022-09-13T15:20:04Z
dc.date.available2022-09-13T15:20:04Z
dc.date.issued2022-05-30
dc.date.updated2022-06-23T12:11:31Z
dc.description.abstractIn South Africa, high levels of wealth inequality have persisted since 1994, to the extent that 1% of the population owns 50% of the wealth. This study examines how macroeconomic policies influenced wealth inequality in South Africa over the period 2010 to 2019 using a behavioural life-cycle model. Despite a decrease in wealth inequality over this period, the extent of this decrease is almost negligible. Results show government’s current policy model to redirect wealth from a very small tax base that is under increasing financial strain is unable to meet wealth redistributive targets. The South African government should change the wealth redistribution policy from redistribution through predominantly lump sums to creating an environment in which private enterprises are able to absorb the labour capital that South Africa possesses. An open labour market would support private and foreign direct investment into the economy, thereby strengthening economic growth and upliftment through increased income and the consequent ability to accumulate wealth.en_US
dc.identifierdoi: 10.3390/jrfm15060243
dc.identifier.apacitationFortuin, M. J., Grebe, G. P. M., & Makoni, P. L. (2022). Wealth Inequality in South Africa&mdash;The Role of Government Policy. <i>Journal of Risk and Financial Management</i>, 15(6), 243. http://hdl.handle.net/11427/36809en_ZA
dc.identifier.chicagocitationFortuin, Marlin Jason, Gerhard Philip Maree Grebe, and Patricia Lindelwa Makoni "Wealth Inequality in South Africa&mdash;The Role of Government Policy." <i>Journal of Risk and Financial Management</i> 15, 6. (2022): 243. http://hdl.handle.net/11427/36809en_ZA
dc.identifier.citationFortuin, M.J., Grebe, G.P.M. & Makoni, P.L. 2022. Wealth Inequality in South Africa&mdash;The Role of Government Policy. <i>Journal of Risk and Financial Management.</i> 15(6):243. http://hdl.handle.net/11427/36809en_ZA
dc.identifier.ris TY - Journal Article AU - Fortuin, Marlin Jason AU - Grebe, Gerhard Philip Maree AU - Makoni, Patricia Lindelwa AB - In South Africa, high levels of wealth inequality have persisted since 1994, to the extent that 1% of the population owns 50% of the wealth. This study examines how macroeconomic policies influenced wealth inequality in South Africa over the period 2010 to 2019 using a behavioural life-cycle model. Despite a decrease in wealth inequality over this period, the extent of this decrease is almost negligible. Results show government&rsquo;s current policy model to redirect wealth from a very small tax base that is under increasing financial strain is unable to meet wealth redistributive targets. The South African government should change the wealth redistribution policy from redistribution through predominantly lump sums to creating an environment in which private enterprises are able to absorb the labour capital that South Africa possesses. An open labour market would support private and foreign direct investment into the economy, thereby strengthening economic growth and upliftment through increased income and the consequent ability to accumulate wealth. DA - 2022-05-30 DB - OpenUCT DP - University of Cape Town IS - 6 J1 - Journal of Risk and Financial Management LK - https://open.uct.ac.za PY - 2022 T1 - Wealth Inequality in South Africa&mdash;The Role of Government Policy TI - Wealth Inequality in South Africa&mdash;The Role of Government Policy UR - http://hdl.handle.net/11427/36809 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/36809
dc.identifier.vancouvercitationFortuin MJ, Grebe GPM, Makoni PL. Wealth Inequality in South Africa&mdash;The Role of Government Policy. Journal of Risk and Financial Management. 2022;15(6):243. http://hdl.handle.net/11427/36809.en_ZA
dc.language.isoenen_US
dc.publisher.departmentAfrican Inst. of Fin. Markets and Risk Mngnten_US
dc.publisher.facultyFaculty of Commerceen_US
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en_US
dc.sourceJournal of Risk and Financial Managementen_US
dc.source.journalissue6en_US
dc.source.journalvolume15en_US
dc.source.pagination243en_US
dc.source.urihttps://www.mdpi.com/journal/jrfm
dc.titleWealth Inequality in South Africa&mdash;The Role of Government Policyen_US
dc.typeJournal Articleen_US
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