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to share of total income. A 45-degree line is used as a reference, and this is known as the line
of perfect equality (Schwarze, 2004; Provide, 2006). The further a Lorenz curve is below
the 45-degree line, the greater the inequality. Provide (2006) reported that the Eastern
Cape Province's Lorenz curve runs along the same 'path' as the South African Lorenz curve
though marginally above in the initial stages, it crosses at the 90 th percentile. In this study,
modified Lorenz curves are used to illustrate income distribution by source in the two
communities. Figure 4.1 shows the distribution of five sources of income (own agriculture
income, own business income, wage labour, remittances and pensions and grants in both
communities combined. Modified Lorenz curves for all the noted sources of income are
presented in Figure 4.1.
The inequality that exists in the two communities, and particularly in the distribution
of income from each source, is reflected in the Lorenz curves presented in Figure 4.1.
Combining incomes from both communities, virtually all the income sources are unequally
distributed. Relative to other sources of income, income from pensions and grants is more
equally distributed, followed by remittances. Productive sources of income; own business,
remuneration and own agriculture incomes are more unequally distributed. Diversity in
households' participation and income is responsible for the level of inequality displayed in
Figure 4.1. Income distribution by source of income (modified Lorentz curve) (Field data, 2008).
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