The social and economic impact of South Africa's social security system

Social grants help reduce poverty, promote job search and increase school enrolment rates in South Africa

By: Samson M, Lee U, Ndlebe A, Mac Quene K, van Niekerk I, Gandhi V, Harigaya T & Abrahams C.
Produced by: Economic Policy Research Institute (EPRI), South Africa , 2004

Social grants play a critical role in reducing poverty and promoting development in South Africa. This study evaluates the socio-economic impact of various social grants including child support grants, disability grants and state pensions. The paper further examines their effects on the household, the labour market and the economy.

The paper begins by assessing the impact of social assistance on poverty reduction. To evaluate the level of poverty, the authors use different methodological approaches including absolute and relative measures. The second section investigates the effects of social grants on households’ access to health care, schooling, housing, water and electricity. The third section examines the impact of social security on employment and productivity. Finally the paper analyses the impact of this public expenditure on macro-economic indicators including national savings and consumption.