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

Stellenbosch Working Paper Series No. WP01/2004
 
Publication date: 2004
 
Author(s):
[protected email address] (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.

 
JEL Classification:

D13, J12, J61, D64, I30, R20

Keywords:

households, poverty, unemployment, rural South Africa

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13 September 2021
It was a data-heavy week in SA, with the 2021Q2 real GDP data indicating that the economy had better-than-expected recovery momentum in the first half of the year. While growth remained solid in the second quarter, both the survey and actual data released last week revealed the significant impact that the range of shocks at the start of the third quarter...

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