Intergenerational Earnings Mobility and Equality of Opportunity in South Africa

The paper estimates the degree of intergenerational earnings persistence in South Africa. Using microdata from the National Income Dynamics Study (NIDS), the paper finds that intergenerational earnings mobility in South Africa is low. Moreover, a limited set of inherited circumstances explains a significant fraction of earnings inequality among male adults. In particular, race is shown to play a significant role. The evidence provided for South Africa is consistent with the hypothesis that low levels of intergenerational mobility and equality of opportunity are characteristic of high-inequality emerging economies.