Inequality, social comparisons and income aspirations: Evidence from a highly unequal country
- Posel, Dorrit, Rogan, Michael
- Authors: Posel, Dorrit , Rogan, Michael
- Date: 2019
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/477920 , vital:78136 , https://doi.org/10.1080/19452829.2018.1547272
- Description: We investigate the formation of minimum income aspirations in South Africa, a country characterised by high poverty rates and high and rising rates of inequality. Although a few empirical studies have explored income aspirations in South Africa, this is the first study that analyses nationally representative micro-data. We add to the broader empirical literature on income aspirations in two ways. First, we investigate whether there is evidence of aspirations failure among the poor and we test the relationship between aspirations and income inequality. Second, we explore whether aspirations have different associations when social comparisons are drawn with different reference groups. Our analysis of the minimum income question (MIQ) asked in a national household survey from 2008/2009 shows that although aspirations increase significantly with income, the poor are far more likely than the non-poor to report aspirations that exceed current income. The aspirations of both the poor and the non-poor also vary positively (and not negatively) with local levels of inequality, although aspirations respond significantly only to the relative success of others in the same race group.
- Full Text:
- Date Issued: 2019
- Authors: Posel, Dorrit , Rogan, Michael
- Date: 2019
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/477920 , vital:78136 , https://doi.org/10.1080/19452829.2018.1547272
- Description: We investigate the formation of minimum income aspirations in South Africa, a country characterised by high poverty rates and high and rising rates of inequality. Although a few empirical studies have explored income aspirations in South Africa, this is the first study that analyses nationally representative micro-data. We add to the broader empirical literature on income aspirations in two ways. First, we investigate whether there is evidence of aspirations failure among the poor and we test the relationship between aspirations and income inequality. Second, we explore whether aspirations have different associations when social comparisons are drawn with different reference groups. Our analysis of the minimum income question (MIQ) asked in a national household survey from 2008/2009 shows that although aspirations increase significantly with income, the poor are far more likely than the non-poor to report aspirations that exceed current income. The aspirations of both the poor and the non-poor also vary positively (and not negatively) with local levels of inequality, although aspirations respond significantly only to the relative success of others in the same race group.
- Full Text:
- Date Issued: 2019
Inequality, social comparisons and minimum income aspirations: Evidence from South Africa
- Posel, Dorrit, Rogan, Michael
- Authors: Posel, Dorrit , Rogan, Michael
- Date: 2017
- Subjects: Economic development -- South Africa South Africa -- Economic conditions South Africa -- Social policy Economic development -- Political aspects -- South Africa
- Language: English
- Type: Book , Text
- Identifier: http://hdl.handle.net/10962/59510 , vital:27621 , ISBN 9780868106359 , DOI 10.21504/10962/59509
- Description: We investigate the formation of minimum income aspirations in South Africa, a country with high rates of poverty together with very high and rising rates of inequality. A number of empirical studies in both developed and developing countries have shown that income aspirations increase with the individual’s own income and with the income of others in their community, relationships which are explained by processes of adaptation through habituation and social comparison. However, the relationship between income aspirations and inequality has received far less empirical attention. We analyse the minimum income question (MIQ) asked in nationally representative household survey from 2008/2009 to test for evidence of aspirations failure among the poor in South Africa, and to investigate whether high levels of local inequality dampen or stimulate minimum income aspirations, and particularly among those living in poverty.
- Full Text:
- Date Issued: 2017
- Authors: Posel, Dorrit , Rogan, Michael
- Date: 2017
- Subjects: Economic development -- South Africa South Africa -- Economic conditions South Africa -- Social policy Economic development -- Political aspects -- South Africa
- Language: English
- Type: Book , Text
- Identifier: http://hdl.handle.net/10962/59510 , vital:27621 , ISBN 9780868106359 , DOI 10.21504/10962/59509
- Description: We investigate the formation of minimum income aspirations in South Africa, a country with high rates of poverty together with very high and rising rates of inequality. A number of empirical studies in both developed and developing countries have shown that income aspirations increase with the individual’s own income and with the income of others in their community, relationships which are explained by processes of adaptation through habituation and social comparison. However, the relationship between income aspirations and inequality has received far less empirical attention. We analyse the minimum income question (MIQ) asked in nationally representative household survey from 2008/2009 to test for evidence of aspirations failure among the poor in South Africa, and to investigate whether high levels of local inequality dampen or stimulate minimum income aspirations, and particularly among those living in poverty.
- Full Text:
- Date Issued: 2017
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