Decomposing the impact of human capital on household income inequality in South Africa: Is education a useful measure?

Friderichs, T. J.; Keeton, Gavin; Rogan, Michael

doi:10.1080/0376835x.2022.2163228

Cited by 7 publications

(2 citation statements)

References 32 publications

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“…This segmentation can be based on factors such as education, occupation, and industry. Studies by Matotoka and Odeku (2022) as well as Friderichs et al (2023) in South Africa indicated that labor market segmentation plays a role in gender-based wage differentials, with women often concentrated in lower-paying, less secure job segments.…”

Section: Concepts Of Earnings Disparities and Underpinning Theoriesmentioning

confidence: 99%

Micro-analysis of earnings and its determinants in eastern cape province of South Africa

Olawuyi,

Mushunje,

Eyinade

2024

J. Infras. Policy. Dev.

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Earnings disparities in South Africa, and specifically the Eastern Cape region are influenced by a complex interplay of historical, socio-economic, and demographic factors. Despite significant progress since the end of apartheid, persistent disparities in earnings continue to raise questions about the effectiveness of policies aimed at reducing inequality and promoting equitable social system. Individual-level dataset from the 2021 South African general household survey were subjected to exploratory analysis, while Heckman selection model was used to investigate the determinants of earnings disparities in the study area. The results showed that majority of the population are not working for a wage, commission or salary, which also pointed to the gravity of unemployment situation in the area of study. Most of the working population (both male and female) are lowest earners (R ≤ 10,000), and this also cuts across all age-group categories. Majority of working population have no formal education, are drop out, or have less than grade-12 certificate, and very few working populations with higher education status were found in the moderate and relatively high earnings categories. While many of the working population are engaged in the informal sector, those in the formal sector are in the lowest earners group. Compared to any other race, the Black African group constituted the majority of non-wage earners, and most in this group were found in the lowest earners group. Some of the working population who were beneficiaries of social grants and medical aids scheme were found in the lowest, low, and moderate earnings categories. The findings significantly isolated the earnings-effect of age, marital status, gender, race, education, geographic indicators, employment sector, and index of health conditions and disabilities. The study recommends interventions addressing racial, gender, and geographic wage gaps, while also emphasizing the importance of equitable access to education, health infrastructure, and skills development.

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Section: Concepts Of Earnings Disparities and Underpinning Theoriesmentioning

confidence: 99%

Micro-analysis of earnings and its determinants in eastern cape province of South Africa

Olawuyi,

Mushunje,

Eyinade

2024

J. Infras. Policy. Dev.

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“…Education and human capital development have been identi ed as key priorities for promoting economic growth and reducing income inequality [23]. However, [40] nd that measures of education may not fully capture the impact of human capital on income inequality in South Africa, and that other factors such as job experience and training may also play a role. To address income inequality and promote sustainable economic growth in Ethiopia, it is important to implement policies that prioritize education and human capital development.…”

Section: Human Capital Channelmentioning

confidence: 99%

The Moderating Effect of Income Inequality on the Relationship between Economic growth and Political Economy, Human capital, Innovation, and Saving Channels in Ethiopia

Hordofa

2023

Preprint

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Background This research focuses on examining the relationship between income inequality and economic growth in Ethiopia over the period from 1981 to 2020. The study aims to understand the various channels through which income inequality affects economic growth and explores the role of different factors such as political economy, innovation, human capital, and saving channels. Method To analyze the relationship between income inequality and economic growth in Ethiopia, the researchers employ the Autoregressive Distributed Lag (ARDL) model. They also conduct the Bayer Hanck (BH) Cointegration Test using four different methods: Engle-Granger, Johansen, Banerjee, and Boswijk. These techniques help determine whether there is a long-term connection, or cointegration, between the variables under investigation. Results The findings of this study indicate strong evidence of cointegration between income inequality and economic growth in Ethiopia, except in the Engle-Granger test. This suggests a long-term relationship between these variables. The researchers analyze various channels through which income inequality affects economic growth. They discover that income inequality significantly hampers economic growth in Ethiopia. On the other hand, the development of human capital, as measured by school enrollment, has a positive and significant impact on economic growth. However, other channel variables such as gross domestic saving, gross fixed capital formation, high-technology exports, general government revenue, and general government total expenditure do not exert a significant influence on economic growth. Conclusions Based on the research findings, the study emphasizes the role of government expenditure as a moderating factor that can mitigate the adverse effects of income inequality on economic growth in Ethiopia. It also highlights the importance of savings channels, particularly gross fixed capital formation, in fostering economic growth. Moreover, the study suggests that innovation, represented by high-technology exports, may indirectly influence economic growth by promoting the development of human capital. Overall, this research provides valuable insights into the intricate relationships between income inequality and economic growth in Ethiopia, exploring both direct and moderating effects through various transmission channels.

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Exploring the impact of green finance and technological innovation on green economic growth: Evidence from emerging market economies

Ali,

Li,

Zhang

et al. 2024

Sustainable Development

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The sustainable future of emerging market economies (EMEs) lies within achieving sustainable development goals (SDGs), specifically SDG 8, which is linked with green economic growth (GEG) and its determinants, such as green finance (GF) and technological innovation (TI), along with some control variables. However, the current literature has insufficiently addressed these determinants in the context of emerging and developing economies. In this regard, this study deployed the most effective and advanced techniques like cross‐sectional auto‐regressive distributed lags, augmented mean group, and common correlated effects mean group to handle the issues of endogeneity, cross‐sectional dependence, and heterogeneity, which is not an easy task for conventional methods used in existing studies. This study has compiled a panel data set spanning from 2000 to 2019, across 13 EMEs. The main outcomes revealed that GF, TI, and human capital (HC) help in fostering significant GEG, whereas financial development (FD) and economic globalization (ECOGLB) fail. The study underscores the need for policymakers to focus on the promotion of diffusion of GF and enhancement of TI and HC while regulating the FD and ECOGLB process to steer emerging nations toward sustainable development.

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Decomposing the impact of human capital on household income inequality in South Africa: Is education a useful measure?

Cited by 7 publications

References 32 publications

Micro-analysis of earnings and its determinants in eastern cape province of South Africa

Micro-analysis of earnings and its determinants in eastern cape province of South Africa

The Moderating Effect of Income Inequality on the Relationship between Economic growth and Political Economy, Human capital, Innovation, and Saving Channels in Ethiopia

Exploring the impact of green finance and technological innovation on green economic growth: Evidence from emerging market economies

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