The Economy-wide Impacts of the South African Child Support Grant: a Micro-Simulation-Computable General Equilibrium Analysis

Luca Tiberti, Hélène Maisonnave, Margaret Chitiga, Ramos Mabugu, Véronique Robichaud and Stewart Ngandu
Authors registered in the RePEc Author Service: Margaret Mabugu

Cahiers de recherche from CIRPEE

Abstract: We examine the economy-wide impact of the child support grant (CSG) on the South African economy using a bottom-up/top-down approach. This allows us to estimate the potential effects on households’ welfare and on the economy following a change in the CSG. Three simulations are presented, in simulation 1 the value of the CSG is increased by 20%; in simulation 2 the number of beneficiaries among the eligible children is increased by two million and simulation 3 combines these two. A positive link between the CSG and the probability of participating in the labour market is found. The positive impacts on the labour market, together with the increase in the transfers received by households, results in an increase in their income. Poverty decreases in comparison with the base year for the whole population and for children. Finally, we can conclude that simulation 1 is the most cost effective of the policies.

Keywords: Child support grant; computable general equilibrium; micro-simulation; poverty; South Africa (search for similar items in EconPapers)
JEL-codes: D58 E24 E6 H53 I3 J01 O55 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cmp and nep-dem
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:lvl:lacicr:1303

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