## South Africa: Selected Issues

_IMF Staff Country Reports, June 6, 2023_

## Source details

**Canonical URL:** [South Africa: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/06/06/south-africa-selected-issues-534274)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/06/06/south-africa-selected-issues-534274/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/06/06/south-africa-selected-issues-534274/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/06/06/south-africa-selected-issues-534274/bundle-manifest.json)

## Bibliographic details
- Published: June 6, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245350.002

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### Summary
- 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.

### Key findings
- 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.

### Subjects and keywords
- 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

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## Content in this bundle

- **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)](/-/media/files/publications/cr/2023/english/1zafea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [South Africa: Selected Issues; IMF Country Report No. 23/195; May 5, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1zafea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/06/06/south-africa-selected-issues-534274_