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South Africa: Selected Issues
Author:
International Monetary Fund. African Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2023: Issue 195
Language:
English
Publication Date:
06 Jun 2023
DOI:
https://doi.org/10.5089/9798400245350.002
ISBN:
9798400245350
ISSN:
1934-7685
Pages:
48
Keywords:
employment probability; CLIMATE mitigation policy; procurement reform priority; carbon tax tax rate; carbon tax scenario; International Monetary Fund Washington, d.c; Carbon tax; Employment; Greenhouse gas emissions; Aging; Africa
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This Selected Issues paper explores the link between social grants and employment in South Africa. Social grants have played an important role in alleviating poverty and inequality in South Africa. The literature has analyzed the link between social grants, means-tested and unconditional on employment, and employment in South Africa. The country’s social grant expenditure is relatively large amid persistently high unemployment. This study uses a large panel household survey spanning a decade to find that old age and disability grant recipients are less in employment as intended by the social program, consistent with the literature. The study adds to the literature by showing that, among “indirect recipients,” younger members typically have lower employment prospects than other indirect recipients. There could be various explanation for this finding, including that the youth are more discouraged from seeking jobs, face larger constraints in the labor market, or have less job opportunities.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2023: Issue 195
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