Estimating the wealth distribution – Measurement work
This project first sets an agenda for the measurement of wealth and wealth inequality. In collaboration with the WID, SCIS estimates the distribution of household wealth in South Africa from 1993 to 2017 by combining household survey data, tax microdata, and macroeconomic balance sheet statistics. South Africa displays unparalleled levels of wealth concentration. The top 10 percent of South African wealth holders own more than 85 percent of household wealth, while the top 1 percent wealth share reaches 55 percent. The top 0.01 percent (about 3,500 adults) own a higher share of wealth than the bottom 90 percent as a whole (about 32 million individuals). SCIS and WID also investigate the feasibility of a wealth tax, arguing that the nature of the wealth distribution makes it a viable tool to raise revenue.