Figure 1: Framework for assessing multiple dimensions of inequality using a capability approach2

2. CONCEPTUAL FRAMEWORK – ASSESSING MULTIPLE

DIMENSIONS OF INEQUALITY

We use various dimensions and metrics to describe and measure inequality. For the purpose of this report, we will be evaluating different dimensions of inequality based on the capability approach taken to the multidimensional inequality framework (explained later in the text) typically used in the broader Human Development context.2 While the exact dimensions of any multidimensional framework can vary somewhat, we opted to interpret typical dimensions presented in the literature in a way that allows for more concrete analysis given limitations on data availability.

“Through the capability approach the Human Development approach redefines the concept of well-being instead of on survival means.” (Bucelli and McKnight, 2021)2

Figure 1: Framework for assessing multiple dimensions of inequality using a capability approach2

Economic

Health Education

Social & cultural Living conditions

Environment Political

Physical security and legal

The framework provides a systematic approach to evaluating eight dimensions of inequality, while emphasising the interconnection between all dimensions.2 These interconnections are based on Sen’s capability approach. The capability approach distinguishes between conversion factors (drivers of multidimensional inequality), capabilities and functionings.2 Conversion factors influence the degree to which advantage or disadvantage can move between the individual domains of inequality, some of these being capabilities (e.g. learning and education) and other functionings (outcomes – e.g. health). An environmental factor such as pollution is an example of a conversion factor that can drive the degree to which inequalities are transferred between domains – for example, from health to economic, if individuals are no longer able to work due to ill health because of pollution exposure.

The progress (or lack thereof) made in each dimension of the multidimensional inequality framework will be explored using a variety of metrics to provide a comprehensive understanding of inequality in South Africa.

Our analysis makes use of various data sources (household surveys, public sector administrative data sources and private sector data sources) to ensure that our evaluation is as comprehensive as possible. Furthermore, this approach ensures robustness since each data source has its own strengths and weaknesses.

The underlying data used in this report and quoted in other reports is mainly derived from survey data sources. In some cases, it is possible to calculate income (personal, household and/or per capita income) from these surveys. However, incomes may be poorly reported in surveys – in some cases because respondents deliberately misstate their income and in others because incomes are inherently unstable and difficult to report on. For this reason, many researchers prefer to use expenditure data rather than income data for analysis. At the same time, the household unit itself is not well-defined or stable, which further complicates deriving per capita income measures.