Working Paper

2015-05-28

University of Cape Town

The paper estimates the degree of intergenerational earnings persistence in South Africa. It explores the link between this measure of social mobility and an index of inequality of opportunity. Using microdata from the National Income Dynamics Study (NIDS), the paper finds that intergenerational earnings mobility in South Africa is low. In addition, a limited set of inherited circumstances explains a significant fraction of earnings inequality among male adults. Adding South Africa to the existing international literature supports the hypothesis that low levels of intergenerational mobility and equality of opportunity are emblematic of high-inequality emerging economies.