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The impact of cash transfers on household welfare in Namibia

Author

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  • Sebastian Levine
  • Servaas van der Berg
  • Derek Yu

Abstract

Namibia has a long history of providing a universal and non-contributory old age pension, child grants using means testing and quasi-conditionalities, and other cash transfers. Multivariate analysis presented in this paper confirms that these transfers play an important role in alleviating poverty, especially for the very poor. The poverty-reducing effects of the child grants are likely to increase further as access is being rapidly expanded. However, the impact in terms of reducing Namibia's extremely high inequality is limited. The targeting of the cash transfers towards the poorest groups takes place through two main channels. For the child grant, targeting occurs as a result of the orphan status eligibility criteria, as orphans are over-represented in lower-income households. For the universal social pension, it appears that some of the relatively less poor do not receive it even if they are eligible. Means testing of child grants appears ineffective, even without considering administrative costs.

Suggested Citation

  • Sebastian Levine & Servaas van der Berg & Derek Yu, 2011. "The impact of cash transfers on household welfare in Namibia," Development Southern Africa, Taylor & Francis Journals, vol. 28(1), pages 39-59.
    • Handle: RePEc:taf:deveza:v:28:y:2011:i:1:p:39-59
    DOI: 10.1080/0376835X.2011.545169
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    Citations

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    Cited by:

    1. Ortiz, Isabel, & Durán Valverde, Fabio. & Pal, Karuna. & Behrendt, Christina. & Acuña-Ulate, Andrés., 2017. "Universal social protection floors : costing estimates and affordability in 57 lower income countries," ILO Working Papers 994972593502676, International Labour Organization.
    2. Pauline Rossi & Mathilde Godard, 2022. "The Old-Age Security Motive for Fertility: Evidence from the Extension of Social Pensions in Namibia," American Economic Journal: Economic Policy, American Economic Association, vol. 14(4), pages 488-518, November.
    3. Biyase, Mduduzi, 2018. "Assessing the impact of social grants on household welfare using morning after simulation and PSM approach," MPRA Paper 84477, University Library of Munich, Germany.
    4. Gemma Wright & Michael Noble & David McLennan & Michell Mpike, 2016. "Updating NAMOD: A Namibian tax-benefit microsimulation model," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).
    5. Wright, Gemma & Noble, Michael & Barnes, Helen, 2014. "NAMOD: a Namibian tax-benefit microsimulation model," EUROMOD Working Papers EM7/14, EUROMOD at the Institute for Social and Economic Research.
    6. Rochelle Beukes & Ada Jansen & Mariana Moses & Derek Yu, 2017. "Exploring the Eligibility Criteria of the Child Support Grant and its Impact on Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 511-529, November.
    7. Smith-Carrier Tracy A & Green Steven, 2017. "Another Low Road to Basic Income? Mapping a Pragmatic Model for Adopting a Basic Income in Canada," Basic Income Studies, De Gruyter, vol. 12(2), pages 1-21, December.
    8. Gitonga, Zachary M. & Visser, Martine & Mulwa, Chalmers, 2020. "Can climate information salvage livelihoods in arid and semiarid lands? An evaluation of access, use and impact in Namibia," World Development Perspectives, Elsevier, vol. 20(C).
    9. Ce Shen & Jessica Johnson & Zhenhe Chi & John B. Williamson, 2020. "Does a universal non‐contributory social pension make sense for rural China?," International Social Security Review, John Wiley & Sons, vol. 73(2), pages 3-26, April.
    10. Gemma Wright & Michael Noble & Helen Barnes & David McLennan & Michell Mpike, 2016. "Updating NAMOD: A Namibian tax-benefit microsimulation model," WIDER Working Paper Series wp-2016-143, World Institute for Development Economic Research (UNU-WIDER).
    11. AfDB AfDB, 2011. "MDG Report 2011 - Full Report," MDG Report 334, African Development Bank.

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