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The Impact of the International Economic Crisis on Child Poverty in South Africa

Author

Listed:
  • Helene Maisonnave
  • Margaret Chitiga
  • Bernard Decaluwé
  • Ramos Mabugu
  • Véronique Robichaud
  • Debra Shepherd
  • Servaas Van der Berg
  • Dieter Von Fintel

Abstract

This article provides insights into the magnitude of the shocks associated with the recent global economic crisis in South Africa, and the extent of fragility in terms of poverty levels and, particularly, child well‐being. The analysis combines macro‐economic and micro‐economic tools and shows that the impact of the economic crisis was not severe on children's poverty headcount, but that material welfare declined across large parts of the distribution. The latter impact on welfare exacerbates poverty depth, moving the already poor further below the poverty line where they remain for much longer. This suggests that the major impact of the economic crisis was on the poorest, and that this is the most difficult to overcome.

Suggested Citation

  • Helene Maisonnave & Margaret Chitiga & Bernard Decaluwé & Ramos Mabugu & Véronique Robichaud & Debra Shepherd & Servaas Van der Berg & Dieter Von Fintel, 2015. "The Impact of the International Economic Crisis on Child Poverty in South Africa," Poverty & Public Policy, John Wiley & Sons, vol. 7(2), pages 176-199, June.
    • Handle: RePEc:wly:povpop:v:7:y:2015:i:2:p:176-199
    DOI: 10.1002/pop4.100
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    References listed on IDEAS

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    1. Alberto Behar & Lawrence Edwards, 2004. "Estimating elasticities of demand and supply for South African manufactured exports using a vector error correction model," CSAE Working Paper Series 2004-04, Centre for the Study of African Economies, University of Oxford.
    2. Nabil Annabi & John Cockburn & Bernard Decaluwé, 2006. "Functional Forms and Parametrization of CGE Models," Working Papers MPIA 2006-04, PEP-MPIA.
    3. Jung, Hong-Sang & Thorbecke, Erik, 2003. "The impact of public education expenditure on human capital, growth, and poverty in Tanzania and Zambia: a general equilibrium approach," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 701-725, November.
    4. Judith Streak & Derek Yu & Servaas Van der Berg, 2009. "Measuring Child Poverty in South Africa: Sensitivity to the Choice of Equivalence Scale and an Updated Profile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 94(2), pages 183-201, November.
    5. Kingdon, Geeta Gandhi & Knight, John, 2004. "Unemployment in South Africa: The Nature of the Beast," World Development, Elsevier, vol. 32(3), pages 391-408, March.
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    Citations

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    Cited by:

    1. Mabugu, Ramos & Robichaud, Veronique & Maisonnave, Helene & Chitiga, Margaret, 2013. "Impact of fiscal policy in an intertemporal CGE model for South Africa," Economic Modelling, Elsevier, vol. 31(C), pages 775-782.
    2. Margaret Chitiga & Bernard Decaluwe & Ramos Mabugu & Helene Maisonnave & Veronique Robichaud & Debra Shepherd & Servaas Van Der Berg & Dieter Von Fintel, 2015. "A Retrospective Look at How Well a Macro‐Micro Model Can Analyze the Impact of the Global Financial Crisis on a Developing Country," Poverty & Public Policy, John Wiley & Sons, vol. 7(3), pages 211-222, September.
    3. Henseler, Martin & Maisonnave, Helene, 2018. "Low world oil prices: A chance to reform fuel subsidies and promote public transport? A case study for South Africa," Transportation Research Part A: Policy and Practice, Elsevier, vol. 108(C), pages 45-62.
    4. Essers, Dennis, 2013. "South African labour market transitions during the global financial and economic crisis: Micro-level evidence from the NIDS panel and matched QLFS cross-sections," IOB Working Papers 2013.12, Universiteit Antwerpen, Institute of Development Policy (IOB).
    5. Dennis Essers, 2014. "South African Labour Market Transitions During the Global Financial and Economic Crisis: Micro-Level Evidence," WIDER Working Paper Series wp-2014-115, World Institute for Development Economic Research (UNU-WIDER).
    6. Johan Fourie, 2016. "The long walk to economic freedom after apartheid, and the road ahead," Working Papers 11/2016, Stellenbosch University, Department of Economics.

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    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • G01 - Financial Economics - - General - - - Financial Crises
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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