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Locked down and locked out: Repurposing social assistance as emergency relief to informal workers

Author

Listed:
  • Ronak Jain

    (University of Massachusetts Amherst)

  • Joshua Budlender

    (University of Oxford)

  • Rocco Zizzamia

    (School of Economics and SALDRU, University of Cape Town)

  • Ihsaan Bassier

    (University of Massachusetts Amherst)

Abstract

We use newly-released South African data to present the first estimates of COVID-19-related employment and poverty impacts in a developing country. We observe a 40% decline in active employment. Half of this comprises job terminations, suggesting persistent labor market effects. Initially vulnerable groups are disproportionately affected. Exploiting the dataset's panel dimension and comparing lockdown incomes of job losers to re-weighted job retainers, we estimate that 20-33% of job losers fall into poverty. Only 20% of those temporarily not working received the intended relief, while a third of job losers had no access to any major form of social protection.

Suggested Citation

  • Ronak Jain & Joshua Budlender & Rocco Zizzamia & Ihsaan Bassier, 2020. "Locked down and locked out: Repurposing social assistance as emergency relief to informal workers," SALDRU Working Papers 264, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:264
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    File URL: https://opensaldru.uct.ac.za/handle/11090/980
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    Citations

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    Cited by:

    1. Aroop Chatterjee & Léo Czajka & Amory Gethin, 2021. "Can Redistribution Keep Up with Inequality? Evidence from South Africa, 1993-2019," Working Papers halshs-03364039, HAL.
    2. Vimal Ranchhod & Reza Che Daniels, 2021. "Labour Market Dynamics in South Africa at the Onset of the COVID‐19 Pandemic," South African Journal of Economics, Economic Society of South Africa, vol. 89(1), pages 44-62, March.
    3. Simone Schotte & Michael Danquah & Robert Darko Osei & Kunal Sen, 2023. "The Labour Market Impact of COVID-19 Lockdowns: Evidence from Ghana," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 10-33.
    4. Lumengo Bonga-Bonga & Thabiso Molemohi & Frederich Kirsten, 2023. "The Role of Personal Characteristics in Shaping Gender-Biased Job Losses during the COVID-19 Pandemic: The Case of South Africa," Sustainability, MDPI, vol. 15(8), pages 1-14, April.
    5. Simone Schotte & Rocco Zizzamia, 2021. "The livelihood impacts of COVID-19 in urban South Africa: A view from below," WIDER Working Paper Series wp-2021-56, World Institute for Development Economic Research (UNU-WIDER).
    6. Michael Danquah & Simone Schotte & Kunal Sen, 2020. "COVID-19 and Employment: Insights from the Sub-Saharan African Experience," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 23-30, October.
    7. Ouoba, Youmanli & Sawadogo, Natéwindé, 2022. "Food security, poverty and household resilience to COVID-19 in Burkina Faso: Evidence from urban small traders’ households," World Development Perspectives, Elsevier, vol. 25(C).
    8. Ihsaan Bassier, 2021. "The impact of centralized bargaining on spillovers and the wage structure in monopsonistic labour markets," WIDER Working Paper Series wp-2021-132, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Labor markets; poverty; unemployment; COVID-19; social protection;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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