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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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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
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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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  1. 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. [Downloadable!] (restricted)
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  2. Johannes G. Hoogeveen, 2005. "Measuring Welfare for Small but Vulnerable Groups: Poverty and Disability in Uganda," Journal of African Economies, Oxford University Press, vol. 14(4), pages 603-631, December.
  3. 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. [Downloadable!] (restricted)
  4. Cally Ardington & Anne Case & Victoria Hosegood, 2009. "Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 22-48, January. [Downloadable!]
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  5. 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. [Downloadable!] (restricted)
  6. Geeta Kingdon & John Knight, 2004. "Unemployment in South Africa: the nature of the beast," Labor and Demography 0409003, EconWPA. [Downloadable!]
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  7. Stephan Klasen & Ingrid Woolard, 2009. "Surviving Unemployment Without State Support: Unemployment and Household Formation in South Africa," Journal of African Economies, Oxford University Press, vol. 18(1), pages 1-51, January. [Downloadable!] (restricted)
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  8. Jonathan Gruber, 2000. "Disability Insurance Benefits and Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1162-1183, December. [Downloadable!] (restricted)
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  9. 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. [Downloadable!] (restricted)
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