TY - GEN

T1 - Measuring income inequality

T2 - a holistic approach

AU - Morton, Bryden

AU - Blair, Chris

PY - 2015/10/7

Y1 - 2015/10/7

N2 - Income inequality across South Africa as a whole, as well as within organisations, has historically plagued the South African economy. Income inequality has traditionally been viewed from a single view point, most commonly the Wage Gap. The problem with making use of any single metric in isolation to quantify income inequality is that no single metric encompassing all aspects of income inequality exists. This paper looks at multiple methods for identifying and addressing income inequality at both macro and microeconomic levels and discusses the advantages and disadvantages of each approach. Furthermore, the overall benefits of using the discussed metrics in conjunction with each other in a multi-metric approach are explored. This multi-metric approach is then consolidated into a composite index, which is calculated using the results from the multi-metric approach. This provides the reader with a toolkit which can be used to analyse their remuneration policies and strategies from a holistic rather than single view point. It allows the user to not only identify but also address income inequality at a more granular (detailed) level than what has been done traditionally and ultimately provides the user with a more effective means of addressing income inequality.

AB - Income inequality across South Africa as a whole, as well as within organisations, has historically plagued the South African economy. Income inequality has traditionally been viewed from a single view point, most commonly the Wage Gap. The problem with making use of any single metric in isolation to quantify income inequality is that no single metric encompassing all aspects of income inequality exists. This paper looks at multiple methods for identifying and addressing income inequality at both macro and microeconomic levels and discusses the advantages and disadvantages of each approach. Furthermore, the overall benefits of using the discussed metrics in conjunction with each other in a multi-metric approach are explored. This multi-metric approach is then consolidated into a composite index, which is calculated using the results from the multi-metric approach. This provides the reader with a toolkit which can be used to analyse their remuneration policies and strategies from a holistic rather than single view point. It allows the user to not only identify but also address income inequality at a more granular (detailed) level than what has been done traditionally and ultimately provides the user with a more effective means of addressing income inequality.

KW - income inequality

KW - wage gap

M3 - Article

VL - 1

SP - 7

EP - 38

JO - SARA Academic Journal

JF - SARA Academic Journal

ER -