The Link Between Social Grant and Employment in South Africa

June 13, 2023

Preview Citation

Format: Chicago

Ken Miyajima. The Link Between Social Grant and Employment in South Africa, (USA: International Monetary Fund, 2023) accessed December 21, 2024

Summary

The literature has analyzed the link between social grants, means-tested and unconditional on employment, and employment in South Africa. The country’s social grant expenditure is relatively large amid persistently high unemployment. This study uses a large panel household survey spanning a decade to find that old-age and disability grant recipients are less in employment as intended by the social program, consistent with the literature. The study adds to the literature by showing that, among “indirect recipients,” younger members typically have lower employment prospects than other indirect recipients. There could be various explanation for this finding, including that the youth are more discouraged from seeking jobs, face larger constraints in the labor market, or have less job opportunities.

Subject: Aging, Education, Employment, Income, International organization, Labor, Monetary policy, National accounts, Population and demographics

Keywords: Aging, Disability grant recipient, Distributional effects, Employment, Employment in South Africa, Employment probability, Grant expenditure, Household survey, Income, Panel household survey, Social grants, South Africa

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/039
Stock No:

SIPEA2023039
ISBN:

9798400243493
ISSN:

2958-7875

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