RURAL POVERTY AND INCOME DISTRIBUTION IN SOUTH AFRICA

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Abstract
This paper reports on analyses of rural household income data that are disaggregated by income sources, race and Province. Techniques of Gini decomposition are used to determine the impact of income components upon measured income inequality. The marginal welfare effects of changes in different income components are also established. This approach is of interest to policy makers, enabling them to evaluate the likely outcomes of policy options designed to alleviate poor poverty and reduce income inequalities. The method is also valuable in measuring the effect of transfers into the household on welfare, whether this is a result of state provision of welfare payments or intra-family remittances.

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