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Household Formation, Poverty and Unemployment – The Case of Rural Households in South Africa

Author

Listed:
  • Sonja Keller

    (Department of Economics, University of Stellenbosch)

Abstract

The paper examines household formation and composition decisions within the context of risk reduction and risk mitigation strategies of the poor in South Africa. A multi-level heckprobit estimator is employed in order to capture the influence of various factors at the individual, household and regional level, and we focus on the implications of the presence of pensioners and the unemployment on household composition and structure. Results are consistent with earlier findings that pensions are a key insurance mechanism for cushioning younger household members against adverse labour market conditions in rural South Africa. Hence they explain the propensity by household members to postpone formation of new independent household in order to continue living in multigenerational households.

Suggested Citation

  • Sonja Keller, 2004. "Household Formation, Poverty and Unemployment – The Case of Rural Households in South Africa," Working Papers 01/2004, Stellenbosch University, Department of Economics.
  • Handle: RePEc:sza:wpaper:wpapers9
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    File URL: https://www.ekon.sun.ac.za/wpapers/2004/wp012004/wp-01-2004.pdf
    File Function: First version, 2004
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    Citations

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    Cited by:

    1. Christelle Swanepoel, 2005. "Poverty and Poverty Dynamics in Rural Ethiopia," Working Papers 03/2005, Stellenbosch University, Department of Economics.
    2. Tiberti, Luca & Maisonnave, Helene & Chitiga, Margaret & Mabugu, Ramos, 2018. "Reforming grants to tackle child poverty: An integrated macro-micro approach," World Development, Elsevier, vol. 112(C), pages 272-281.
    3. Luca Tiberti & Hélène Maisonnave & Margaret Chitiga & Ramos Mabugu & Véronique Robichaud & Stewart Ngandu, 2013. "The Economy-wide Impacts of the South African Child Support Grant: a Micro-Simulation-Computable General Equilibrium Analysis," Cahiers de recherche 1303, CIRPEE.
    4. 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 Communities1," South African Journal of Economics, Economic Society of South Africa, vol. 73(s1), pages 545-563, December.

    More about this item

    Keywords

    households; poverty; unemployment; rural South Africa;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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