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Cash transfers, labor supply and gender inequality: Evidence from South Africa

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  • Giorgio d'Agostino
  • Margherita Scarlato

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. Ouraim is to assess, by evaluating potential heterogeneity of the effects by gender, whether and towhat extent the program improved or lessened gender inequality in the labor market. We usedata from a national panel survey, the National Income Dynamics Study, and apply a fuzzyregression discontinuity design that exploits an expansion in eligibility due to a discontinuouschange in the age eligibility criterion. The results show that the CSG had a negative effecton the probability of parents of beneficiary children being employed and mixed effects onthe participation in the labor force, with substantial heterogeneity by gender and by otherindividual and household characteristics. Overall, the evaluation suggests that the programprovided support to the members of vulnerable household in coping with the constraints ofthe South African labor market, but it did not serve to reshape existing gender inequalities

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  • Giorgio d'Agostino & Margherita Scarlato, 2019. "Cash transfers, labor supply and gender inequality: Evidence from South Africa," Working Papers 0046, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    • Handle: RePEc:ast:wpaper:0046
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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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