Determinants of Income Inequality during the COVID-19 Pandemic in South Africa
Keywords:
COVID-19, income inequality, financial literacyAbstract
The COVID-19 epidemic has caused significant social disruption, particularly in South Africa. To contain the pandemic, the South African government implemented many lockdowns. This has resulted into income losses for individuals and firms, with vulnerable populations being most affected. This study used two comprehensive Waves (Wave 1 and Wave 2) of the COVID-19 pandemic in South Africa. The study was assessed from household level data gathered by DataFirst based on the National Income Dynamics Survey from 2020-2021. The results showed that there was a greater income inequality between females than amongst males. This implies that men had a better chance of continuing with work and earning an income than females during the Covid-19 pandemic. The study found that majority of people especially in rural areas do not have saving, investment or any form of emergency funds. Financial illiteracy also contributed to people living in rural areas not having saving and investments for unforeseen circumstances.
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Copyright (c) 2025 Thabang Pheladi Augustine Ntsoane, Abayomi Samuel Oyekale
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