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GTAP Resource #3824

by Chitiga, Margaret

This paper seeks to analyse the multiplier effects of the Child Support Grant (CSG) on income and/or welfare in South Africa. Research has shown that there are several channels for the household-level impacts of social welfare grants one of which is multiplier effects on income and welfare. In this regard, this paper will develop a micro-simulation technique, which will be used with a CGE model to determine the impact on these effects. The child support grant in South Africa, has been expanded greatly in recent years, and is particularly aimed at children in poor families. It offers a potential source of protection against poverty for poor children. It is agreed in South Africa that the CSG has contributed to reduce poverty as well as shield children from adverse economic effects. According to the Department of Social Development (2011), 2007 figures indicate that there was a 9% drop in child poverty because of the CSG. The Department of Social Development (2011) acknowledges that not all children eligible for the CSG are receiving it, citing lack of documentation as the biggest barrier. In 2008, 2.1 million children or 27% of those eligible for the CSG did not receive it (Department of Social Development 2011). In this research project, an innovative bottom-up/top-down approach is proposed. to capture the multiplier effects in the economy brought about by the main South African social protection schemes (in primis, the Child Support Grant - CSG). In particular, the micro-economic module identifies two main channels through which the extension of the social grant affects the economy: labour supply and household consumption.
2.Data, assumptions and methodology for the micro-model
With regards to the labour supply, the change (positive or negative) in the incentive to participate into the labour market due a variation in the social transfer is estimated. Answering whether labour force participation or labour supply are affected by CSG receipt ...

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: Chitiga, M. (4/26/2012)
Updated: Chitiga, M. (4/26/2012)
Visits: 2,455
- Economic development
- Economic analysis of poverty
- Africa (Southern)

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