Authors: David Francis, Kamal Ramburuth-Hurt and Imraan Valodia
SCIS Working Paper | Number 4
During the COVID-19 pandemic and response, an important question, from both a health and economic policy perspective, is how many workers are able to return to work as the lockdown is eased and tightened in response to the spread of the virus. Using a static analysis derived from industry subsectors, we estimate employment allowed under each level of the five-level lockdown framework. We estimate that under level five of the lockdown framework, 40% of total employment is permitted, or 6.6 million workers. This rises to 55% (9.2 million) under level four; 71% (11.8 million) under level three; 94% (15.6 million) under level two and 100% under level one. This is a static analysis and assumes that no jobs are lost as a result of a lockdown. As such, its principle use is as a distributional analysis of the share of workers permitted to work under each level of the lockdown.
Author: Aroop Chatterjee, Léo Czajka and Amory Gethin
This working paper is the result of a collaboration between the Southern Centre for Inequality Studies and the World Inequality Lab.
SCIS Working Paper | Number 3
This paper estimates the distribution of personal wealth in South Africa by combining tax microdata covering the universe of income tax returns, household surveys and macroeconomic balance sheets statistics. We systematically compare estimates of the wealth distribution obtained by direct measurement of net worth, rescaling of reported wealth to balance sheets totals, and capitalisation of income flows. We document major inconsistencies between available data sources, in particular regarding the measurement of dividends, corporate assets and wealth held through trusts. Both household surveys and tax data remain insufficient to properly capture capital incomes. Notwithstanding a significant degree of uncertainty, our findings reveal unparalleled levels of wealth concentration. The top 10 per cent own 86 per cent of aggregate wealth and the top 0.1 per cent close to one third. The top 0.01 per cent of the distribution (3,500 individuals) concentrate 15 per cent of household net worth, more than the bottom 90 per cent as a whole. Such high levels of inequality can be accounted for in all forms of assets at the top end, including housing, pension funds and other financial assets. Our series show no sign of decreasing wealth inequality since apartheid: if anything, we find that inequality has remained broadly stable and has even slightly increased within top wealth groups.
Beyond a Treasury View of the World: reflections from theory and history on heterodox economic policy options for South Africa
SCIS Working Paper | Number 2
SCIS Working Paper | Number 1
The Southern Centre for Inequality Studies (SCIS) at the University of the Witwatersrand takes great pleasure in presenting this, our first Working Paper, by economic historian Sampie Terreblanche. It was exactly twenty years ago that Professor Terreblanche presented his testimony to the Truth and Reconciliation Commission (TRC). Two decades later, it remains extremely relevant. This Working Paper presents some contemporary reflections on inequality, penned by Professor Terreblanche. These are followed by a reproduction, in full, of his testimony to the TRC in November 1997, which called for the levying of a wealth tax on all affluent South Africans.