Government social protection and households’ welfare during the Covid-19 pandemic in South Africa

Sheunesu Zhou, Ayansola O. Ayandibu, Tendai Chimucheka and Mandla M. Masuku

Journal of Business and Socio-economic Development, 2023, vol. 3, issue 4, 308-321

Abstract: Purpose - This study evaluates the impact of government social protection interventions on households’ welfare in South Africa. Design/methodology/approach - The study uses survey data comprising 393 observations and the multinomial logistic regression technique to analyse the effect of government interventions on households’ welfare. For robustness purposes, a negative binomial regression model is also estimated whose results corroborate the main results from the multinomial regression model. Findings - The study’s findings show that government economic interventions through social protection significantly reduce the likelihood of a decrease in household income or consumption. COVID-19 grant/social relief of distress grant, unemployment insurance, tax relief and job protection and creation are all significant in sustaining household income and consumption. Practical implications - The findings have policy implications for social development. Specifically, the findings support the use of government social protection as a safety net for low-income groups in South Africa. Originality/value - The study presents preliminary evidence on the effectiveness of several measures used to ameliorate the COVID-19-induced recession within the South African context.

Keywords: Social protection; Government intervention; Households’ welfare; COVID-19 pandemic; Multinomial logistic regression; D10; D12; D60; R20 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jbsedp:jbsed-04-2022-0044

DOI: 10.1108/JBSED-04-2022-0044

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