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Permanent link (DOI): https://doi.org/10.7939/R3PX4W

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Effects of Social Grants on Labor Supply and Food Security of South African Households: Is There a Disincentive Effect? Open Access

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Other title
Subject/Keyword
South African Households
Labor Supply
Disincentive Effect
Social Grants
Food Security
Type of item
Thesis
Degree grantor
University of Alberta
Author or creator
Ndlovu, Patrick V
Supervisor and department
Professor Sandeep Mohapatra: Department of Resource Economics and Environmental Sociology
Professor Martin Luckert: Department of Resource Economics and Environmental Sociology
Examining committee member and department
Professor Sven Anders: Department of Resource Economics and Environmental Sociology
Professor Martin Luckert: Department of Resource Economics and Environmental Sociology
Professor Duncan Sunders: Department of Public Health Sciences
Professor Sandeep Mohapatra: Department of Resource Economics and Environmental Sociology
Department
Department of Resource Economics and Environmental Sociology
Specialization
Agricultural and Resource Economics
Date accepted
2013-01-07T15:12:05Z
Graduation date
2013-06
Degree
Master of Science
Degree level
Master's
Abstract
This study assesses impacts of social grants on labor supply and food security of South African households. We use a unique set of data collected in rural Eastern Cape in 2011. We highlight the interaction of two key household endowments, gender and human capital, in catalyzing or retarding the effects of grants on household welfare. First, our inquiry explores whether social grants create disincentives in labor supply. We control for endogeneity of social grants by running a Newey two-step efficient estimator– implemented on an instrumental variable (IV) Tobit regression for labor supply. Using household pension income as the primary measure of social grants, we find that pensions have a disincentive effect on labor supply in off-farm, agriculture, natural resource, and domestic work. However, there is heterogeneity in pension impacts across gender and education profiles. The disincentive effect of pensions is less for men compared to women. On the other hand, pensions have a complementary effect on labor supply amongst individuals with higher education. This complementarity between social grants and human capital overcomes the disincentive effect on labor supply. We also find that other types of grants do not have any impacts on labor supply. Second, we assess whether per capita consumption expenditures on food increase when households receive grants. We use a linear IV regression to analyse impacts on consumption expenditures. We find that pensions have a positive impact on food consumption expenditures. The effect of pensions on food consumption expenditures does not change with gender and education. The inclusion of in-kind consumption in measuring consumption expenditures shows that other types of grants also have a positive impact on consumption expenditures. The marginal propensity to consume out of pensions and other social grant income is higher compared to other income.
Language
English
DOI
doi:10.7939/R3PX4W
Rights
Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. Where the thesis is converted to, or otherwise made available in digital form, the University of Alberta will advise potential users of the thesis of these terms. The author reserves all other publication and other rights in association with the copyright in the thesis and, except as herein before provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.
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