Navigating crisis: Household recomposition and welfare patterns during COVID-19 in South Africa

Evaluating the simultaneous impact of income and mobility choices amid significant economic shocks is crucial for creating evidence-based welfare policies, especially in developing economies. We conduct an integrated analysis using a comprehensive panel survey from South Africa, set against the backdrop of the COVID-19 pandemic. The alteration of household composition by relocating children, a practice frequently seen in South African homes even before COVID-19, is associated with diminished welfare in households already under strain. Conversely, highly vulnerable households that received the Social Relief of Distress grant experienced a reduction in severe child hunger by over 20%, and showed lessened reliance on remittance income. Severed connections to the labour market emerged as the factor most strongly associated with food insecurity. Households are confronted with challenging trade-offs when balancing income and mobility decisions. These findings underscore the importance of governmental support for at-risk communities during economic upheavals, particularly for the working-age unemployed.