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Disability Cash Transfers in the Context of Poverty and Unemployment: the Case of South Africa

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Author Info

  • Sophie Mitra

    (Fordham University, Department of Economics)

Abstract

South Africa's Disability Grant program has been widely criticized for its poor administration and the dependency culture it promotes. This paper attempts to assess the Disability Grant program's targeting effectiveness and its effects on labor market behaviors. Using disability self reports and standard measures of economic well being, results suggest that the Disability Grant is relatively well targeted. Exclusion and inclusion errors are substantial but are comparable to those found in developed countries' disability programs. Increased leniency in disability screening in the program in selected provinces does not appear to have altered labor market behaviors between 2001 and 2003.

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Bibliographic Info

Paper provided by Fordham University, Department of Economics in its series Fordham Economics Discussion Paper Series with number dp2009-08.

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Date of creation: 2009
Date of revision:
Handle: RePEc:frd:wpaper:dp2009-08

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Web page: http://www.fordham.edu/economics/
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Related research

Keywords: Cash transfers; disability; targeting; labor supply; Africa; South Africa;

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References

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  1. Cally Ardington & Anne Case & Victoria Hosegood, 2007. "Labor supply responses to large social transfers: Longitudinal evidence from South Africa," SALDRU Working Papers 17, Southern Africa Labour and Development Research Unit, University of Cape Town.
  2. Standing Guy, 2008. "How Cash Transfers Promote the Case for Basic Income," Basic Income Studies, De Gruyter, vol. 3(1), pages 1-30, July.
  3. Sophie Mitra, 2005. "Disability and Social Safety Nets in Developing Countries," World Bank Other Operational Studies 11783, The World Bank.
  4. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-61, September.
  5. Yeo, Rebecca & Moore, Karen, 2003. "Including Disabled People in Poverty Reduction Work: "Nothing About Us, Without Us"," World Development, Elsevier, vol. 31(3), pages 571-590, March.
  6. Geeta Kingdon & John Knight, 2005. "Unemployment in South Africa, 1995-2003: Causes, Problems and Policies," Economics Series Working Papers GPRG-WPS-010, University of Oxford, Department of Economics.
  7. Kingdon, Geeta Gandhi & Knight, John, 2004. "Unemployment in South Africa: The Nature of the Beast," World Development, Elsevier, vol. 32(3), pages 391-408, March.
  8. Sophie Mitra, 2008. "The Recent Decline In The Employment Of Persons With Disabilities In South Africa, 1998-2006," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 480-492, 09.
  9. Frikkie Booysen & Servaas Van Der Berg, 2005. "The Role Of Social Grants In Mitigating The Socio-Economic Impact Of Hiv/Aids In Two Free State Communities," South African Journal of Economics, Economic Society of South Africa, vol. 73(s1), pages 545-563, December.
  10. Sophie Mitra, 2009. "Disability Screening and Labor Supply: Evidence from South Africa," American Economic Review, American Economic Association, vol. 99(2), pages 512-16, May.
  11. David Lam & Murray Leibbrandt & Vimal Ranchhod, 2005. "Labour force withdrawal of the elderly in South Africa," SALDRU/CSSR Working Papers 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
  12. Gruber, Jonathan & Kubik, Jeffrey D., 1997. "Disability insurance rejection rates and the labor supply of older workers," Journal of Public Economics, Elsevier, vol. 64(1), pages 1-23, April.
  13. Stephan Klasen & Ingrid Woolard, 2001. "Surviving Unemployment without State Support: Unemployment and Household Formation in South Africa," CESifo Working Paper Series 533, CESifo Group Munich.
  14. Sophie Mitra & Usha Sambamoorthi, 2009. "Wage differential by disability status in an agrarian labour market in India," Applied Economics Letters, Taylor & Francis Journals, vol. 16(14), pages 1393-1398.
  15. Michele Campolieti, 2004. "Disability Insurance Benefits and Labor Supply: Some Additional Evidence," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 863-890, October.
  16. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April.
  17. Jonathan Gruber, 1996. "Disability Insurance Benefits and Labor Supply," NBER Working Papers 5866, National Bureau of Economic Research, Inc.
  18. Brent Kreider, 1999. "Latent Work Disability and Reporting Bias," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 734-769.
  19. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
  20. Johannes G. Hoogeveen, 2005. "Measuring Welfare for Small but Vulnerable Groups: Poverty and Disability in Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(4), pages 603-631, December.
  21. Parsons, Donald O., 1996. "Imperfect 'tagging' in social insurance programs," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 183-207, October.
  22. Robert Haveman & Barbara Wolfe, 1990. "The Economic Well-Being of the Disabled: 1962-84," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 32-54.
  23. Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002. "Targeting outcomes redux," FCND briefs 144, International Food Policy Research Institute (IFPRI).
  24. Anne Case & Victoria Hosegood & Frances Lund, 2004. "The Reach and Impact of Child Support Grants: Evidence from KwaZulu-Natal," Working Papers 241, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  25. David H. Autor & Mark G. Duggan, 2003. "The Rise In The Disability Rolls And The Decline In Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 157-205, February.
  26. Deon Filmer, 2008. "Disability, Poverty, and Schooling in Developing Countries: Results from 14 Household Surveys," World Bank Economic Review, World Bank Group, vol. 22(1), pages 141-163, January.
  27. Mitra, Sophie & Sambamoorthi, Usha, 2008. "Disability and the Rural Labor Market in India: Evidence for Males in Tamil Nadu," World Development, Elsevier, vol. 36(5), pages 934-952, May.
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Citations

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Cited by:
  1. George Mutasa, 2012. "Demographic, Community and Macroeconomic Effects on Disability Grant Programme Participation," Working Papers 12155, University of Cape Town, Development Policy Research Unit.
  2. Palmer, Michael G. & Nguyen, Thi Minh Thuy, 2012. "Mainstreaming health insurance for people with disabilities," Journal of Asian Economics, Elsevier, vol. 23(5), pages 600-613.
  3. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.

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