South Africa: Selected Issues

IMF Staff Country Reports, June 6, 2023

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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.

Old age and disability grant recipients are less in employment as intended by the social program.
Among “indirect recipients,” younger members typically have lower employment prospects than other indirect recipients.
Possible explanations noted in the study include:
- the youth are more discouraged from seeking jobs,
- the youth face larger constraints in the labor market,
- the youth have less job opportunities.

Subject: Aging, Carbon tax, Employment, Environment, Greenhouse gas emissions, International organization, Labor, Monetary policy, Population and demographics, Taxes
Keywords: Africa, Aging, Carbon tax, carbon tax scenario, carbon tax tax rate, CLIMATE mitigation policy, d.c, Employment, employment probability, Greenhouse gas emissions, International Monetary Fund Washington, procurement reform priority

South Africa: Selected Issues; IMF Country Report No. 23/195; May 5, 2023
- South Africa: Selected Issues; IMF Country Report No. 23/195; May 5, 2023 (Markdown version)
- South Africa: Selected Issues; IMF Country Report No. 23/195; May 5, 2023 (PDF)