Efficiency and equity effects of social grants in South Africa
Stellenbosch Working Paper Series No. WP15/2010Publication date: 2010
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
[protected email address] (Department of Economics, University of Stellenbosch)
This paper discusses the nature and effects of social grants programmes in South Africa against the backdrop of international trends in the reform of social assistance systems. It shows that South Africa has a well-developed social assistance system that significantly reduces extreme poverty, in part because the grants are very well targeted. The review of existing literature and new evidence presented in this paper suggest that the grants influence the behaviour of recipients and potential recipients in various ways, not all of which are necessarily benign. The paper also highlights the scope for further research on the potential of workfare programmes, conditional cash transfer programmes and other innovative social assistance schemes in the South African context.
JEL Classification:H31, H53, I38
Keywords:Social security, social grants, social pensions, child support grants, effects of social assistance, South Africa
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Upcoming Seminars
Monday 21 July 202512:00-13:00
Izak Odendaal: Old Mutual Wealth Chief Investment Strategist
Topic: "Diverging fiscal policies and what it means for markets"
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Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
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4 Jul 2025 One Big Beautiful Bill Act passes as tariff pause deadline loomsThis week brought a flurry of data releases alongside a heavy dose of political drama, both locally and globally. Yesterday’s stronger-than-expected US jobs report was the standout global data release. Domestically, tensions persisted in the DA-ANC relationship. On the international stage, headlines were dominated by the passage of the One Big Beautiful...
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