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Cash Transfers, Labor Supply, and Gender Inequality: Evidence from South Africa

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  • Margherita Scarlato
  • Giorgio d'Agostino

Abstract

This paper provides an empirical analysis of the impact of the Child Support Grant (CSG) implemented in South Africa on the labor supply of the parents of beneficiary children. The aim is to assess whether the program improved or lessened gender inequality in the labor market. Using data from a national panel survey and applying a fuzzy regression discontinuity design that exploits an expansion in eligibility due to a discontinuous change in age eligibility, the results show that the CSG had a negative effect on the probability of parents of beneficiary children being employed and mixed effects on the participation in the labor force, with substantial heterogeneity by gender and by other individual and household characteristics. Overall, the evaluation suggests that the program provided support to members of vulnerable households in coping with the constraints of the South African labor market, but it did not reshape existing gender inequalities.

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  • Margherita Scarlato & Giorgio d'Agostino, 2019. "Cash Transfers, Labor Supply, and Gender Inequality: Evidence from South Africa," Feminist Economics, Taylor & Francis Journals, vol. 25(4), pages 159-184, October.
    • Handle: RePEc:taf:femeco:v:25:y:2019:i:4:p:159-184
    DOI: 10.1080/13545701.2019.1648850
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    3. Giorgio d'Agostino & Francesco Giuli & Marco Lorusso & Margherita Scarlato, 2020. "Fiscal policy, labour market, and inequality: Diagnosing South Africa's anomalies in the shadow of racial discrimination," WIDER Working Paper Series wp-2020-122, World Institute for Development Economic Research (UNU-WIDER).

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