Subjective Wellbeing Inequality in South Africa 2008-14: An Unconditional Quantile Decomposition Analysis

This study analyses the sources of reduction in subjective wellbeing (SWB) inequality in South Africa over the period 2008-14. The unconditional quantile regression decomposition of mean gap finds differences in the effect of covariates along the SWB distribution, underlining the relevance of going beyond mean-based decomposition. Fall in SWB inequality is due to the increased level of SWB on the left-hand side of the distribution and a reduced level in the upper end of the distribution. Greater access to public amenities such as electricity and flushing toilets among those on the lower SWB distribution and lower returns to relative income and good health among those on the upper SWB spectrum can be said to be the major reasons for decline in SWB inequality. While the trend in returns to race has contributed to lower SWB inequality, employment stands out starkly as increasing inequality through both endowment and coefficient effect.