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Efficiency and equity effects of social grants in South Africa

Author

Listed:
  • Servaas van der Berg

    (Department of Economics, University of Stellenbosch)

  • Krige Siebrits

    (Department of Economics, University of Stellenbosch)

  • Bongisa Lekezwa

    (Department of Economics, University of Stellenbosch)

Abstract

This paper discusses the nature and effects of social grants programmes in South Africa against the backdrop of international trends in the reform of social assistance systems. It shows that South Africa has a well-developed social assistance system that significantly reduces extreme poverty, in part because the grants are very well targeted. The review of existing literature and new evidence presented in this paper suggest that the grants influence the behaviour of recipients and potential recipients in various ways, not all of which are necessarily benign. The paper also highlights the scope for further research on the potential of workfare programmes, conditional cash transfer programmes and other innovative social assistance schemes in the South African context.

Suggested Citation

  • Servaas van der Berg & Krige Siebrits & Bongisa Lekezwa, 2010. "Efficiency and equity effects of social grants in South Africa," Working Papers 15/2010, Stellenbosch University, Department of Economics.
    • Handle: RePEc:sza:wpaper:wpapers115
    as

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    File URL: https://www.ekon.sun.ac.za/wpapers/2010/wp152010/wp-15-2010.pdf
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    References listed on IDEAS

    as
    1. de Neubourg, Chris & Castonguay, Julie & Roelen, Keetie, 2007. "Social safety nets and targeted social assistance : lessons from the European experience," Social Protection Discussion Papers and Notes 41529, The World Bank.
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    Citations

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    Cited by:

    1. von Fintel, Dieter & Pienaar, Louw, 2016. "Small-Scale Farming and Food Security: The Enabling Role of Cash Transfers in South Africa's Former Homelands," IZA Discussion Papers 10377, Institute of Labor Economics (IZA).
    2. repec:ilo:ilowps:485483 is not listed on IDEAS
    3. Giorgio d’Agostino & Margherita Scarlato & Silvia Napolitano, 2018. "Do Cash Transfers Promote Food Security? The Case of the South African Child Support Grant," Journal of African Economies, Centre for the Study of African Economies, vol. 27(4), pages 430-456.
    4. Kearney, Marna & Odusola, Ayodele, 2011. "Assessing Development Strategies to Achieve the MDGs in The Republic of South Africa," UNDP Africa Economists Working Papers 307332, United Nations Development Programme (UNDP).
    5. Servaas van der Berg & Krige Siebrits, 2010. "Social assistance reform during a period of fiscal stress," Working Papers 17/2010, Stellenbosch University, Department of Economics.
    6. Kearney, Marna & Odusola, Ayodele, 2001. "Assessing Development Strategies to Achieve the MDGs in The Republic of South Africa," UNDP Africa Research Discussion Papers 267055, United Nations Development Programme (UNDP).
    7. Leubolt, Bernhard., 2014. "Social policies and redistribution in South Africa," ILO Working Papers 994854833402676, International Labour Organization.
    8. Kanayo Ogujiuba & Ntombifuthi Mngometulu, 2022. "Does Social Investment Influence Poverty and Economic Growth in South Africa: A Cointegration Analysis?," Economies, MDPI, vol. 10(9), pages 1-23, September.
    9. Margherita Scarlato & Giorgio d'Agostino, 2019. "Cash Transfers, Labor Supply, and Gender Inequality: Evidence from South Africa," Feminist Economics, Taylor & Francis Journals, vol. 25(4), pages 159-184, October.
    10. Wynand Carel Johannes Grobler & Steve Dunga, 2015. "Spending Patterns Of Food Secure And Food Insecure Households In Urban Areas: The Case Of Low Income Neighborhoods," Proceedings of International Academic Conferences 1003641, International Institute of Social and Economic Sciences.
    11. Stanley Sharaunga & Maxwell Mudhara, 2021. "Analysis of Livelihood Strategies for Reducing Poverty Among Rural Women's Households: A Case Study of KwaZulu‐Natal, South Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(1), pages 127-150, January.
    12. Priscilla Gutura, 2014. "Boosting Their Stomachs’: The Role of Social Grants in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 6(2), pages 105-119.
    13. Stephen Devereux & Edoardo Masset & Rachel Sabates-Wheeler & Michael Samson & Althea-Maria Rivas & Dolf te Lintelo, 2017. "The targeting effectiveness of social transfers," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(2), pages 162-211, April.
    14. Wynand Carel Johannes Grobler & Steve Dunga, 2019. "Analysis of food security status among the elderly in South Africa," Proceedings of International Academic Conferences 9412193, International Institute of Social and Economic Sciences.
    15. 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.
    16. William Ascher, 2023. "Coping with the ambiguities of poverty-alleviation programs and policies: a policy sciences approach," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 325-354, June.

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    More about this item

    Keywords

    Social security; social grants; social pensions; child support grants; effects of social assistance; South Africa;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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