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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22 February 2021
As is often the case, domestic financial markets largely ignored local developments, including a lower-than-expected January consumer inflation print, last week and were swept along by the intensification of the global reflation trade. Outside of the inflation release, the domestic data releases continued to show that there was still some recovery momentum...

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