Infrastructural access and racial inequalities as determinants of income dynamics in South Africa

This study investigates the relationship between local infrastructural conditions and individuals' objective and subjective income dynamics, focusing on its racial determinants. With significant infrastructure development taking place since the end of apartheid, South Africa provides an ideal context for this analysis. Beyond the traditional economic channels, we explore the broader structural advantages conferred by access to infrastructure, influencing not only objective income but also subjective perceptions of individuals' social standing. We use data from the National Income Dynamics Study (NIDS), covering the years 2008–2017 and employ both a pooled and fixed-effects estimation strategy to assess static and dynamic effects. Our findings reveal positive associations between infrastructural access and both objective and subjective income measures, differently experienced by race. This suggests that improving access to infrastructure not only correlates with tangible socioeconomic improvements but also positively influences individuals' perceptions of their social status, especially for some societal groups, with relevant implications for overall well-being.