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Assessing the Impact of Social Grants on Inequality: A South African Case Study

In: Contemporary Issues in Development Economics

Author

Listed:
  • Reinhard Schiel
  • Murray Leibbrandt
  • David Lam

Abstract

The purpose of this chapter is to investigate the role of social grants in reducing income inequality during the first 15 years of democracy in South Africa. Since the transition to democracy in 1994, the South African government has dramatically expanded this system of social grants. Building on an existing but racially biased social security system developed by the apartheid government, the social grant system was expanded to include all races and then, through the 1990s, additional social transfers were instituted.

Suggested Citation

  • Reinhard Schiel & Murray Leibbrandt & David Lam, 2016. "Assessing the Impact of Social Grants on Inequality: A South African Case Study," International Economic Association Series, in: Timothy Besley (ed.), Contemporary Issues in Development Economics, chapter 8, pages 112-135, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-52974-9_8
    DOI: 10.1057/9781137529749_8
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    References listed on IDEAS

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    5. Ingrid Woolard & Murray Leibbrandt, 2010. "The Evolution and Impact of Unconditional Cash Transfers in South Africa," SALDRU Working Papers 51, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    7. Azevedo, Joao Pedro & Inchauste, Gabriela & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2013. "Is labor income responsible for poverty reduction ? a decomposition approach," Policy Research Working Paper Series 6414, The World Bank.
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    Cited by:

    1. Janina Hundenborn & Ingrid Woolard & Jon Jellema, 2019. "The effect of top incomes on inequality in South Africa," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(5), pages 1018-1047, October.
    2. Nnaeme, Chibuikem C. & Patel, Leila & Plagerson, Sophie, 2020. "How cash transfers enable agency through livelihoods in South Africa," World Development, Elsevier, vol. 131(C).
    3. Ingrid Woolard & Janina Hundenborn & Jon Jellema, 2018. "The effect of top incomes on inequality in South Africa," WIDER Working Paper Series 90, World Institute for Development Economic Research (UNU-WIDER).
    4. 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.
    5. Janina Hundenborn & Ingrid Woolard & Murray Leibbrandt, 2016. "Drivers of Inequality in South Africa," SALDRU Working Papers 194, Southern Africa Labour and Development Research Unit, University of Cape Town.

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