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Throwing the Book at the CSG

Author

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  • Katherine Eyal

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

  • Ingrid Woolard

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

Abstract

We estimate the effect of the child support grant on mothers' labour supply in South Africa. Identification is based on the use of specific samples, such as black mothers, aged 20 to 45, whose youngest child is aged within 2 years of the age eligibility cut-off, and unanticipated variation over the years in the age eligibility cut-off. Balancing tests across the age cut-o s are used to show that there are no significant differences between mothers of eligible and ineligible children in the samples used, over the years. Different techniques are used to estimate the effect of the child support grant from many angles, including simple OLS as a bench mark, a difference in difference estimator, using appropriately constructed treatment and control groups, instrumental variables estimates, and descriptive analysis. The effect of having an age eligible child is large. Mothers who become recipients in their twenties see an average increase in employment probability of 15%, and in labour force participation of 9%. Many robustness and specification checks are used, including placebo regressions in the pre-treatment years, to ensure the estimated effect is not due to age or another variable.

Suggested Citation

  • Katherine Eyal & Ingrid Woolard, 2011. "Throwing the Book at the CSG," SALDRU Working Papers 53, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:53
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    References listed on IDEAS

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    1. Alex Van Der Merwe, 2006. "Identifying Some Constraints In First Year Economics Teaching And Learning At A Typical South African University Of Technology," South African Journal of Economics, Economic Society of South Africa, vol. 74(1), pages 150-159, March.
    2. Cornéa van Walbeek, 2004. "Does Lecture Attendance Matter? Some Observations From A First‐Year Economics Course At The University Of Cape Town," South African Journal of Economics, Economic Society of South Africa, vol. 72(4), pages 861-883, September.
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    Cited by:

    1. Alessandro Tondini & Cally Ardington & Ingrid Woolard, 2017. "Public pensions and elderly informal employment: Evidence from a change in retirement age in South Africa," SALDRU Working Papers 206, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Tiberti, Luca & Maisonnave, Helene & Chitiga, Margaret & Mabugu, Ramos, 2018. "Reforming grants to tackle child poverty: An integrated macro-micro approach," World Development, Elsevier, vol. 112(C), pages 272-281.
    3. Luca Tiberti & Hélène Maisonnave & Margaret Chitiga & Ramos Mabugu & Véronique Robichaud & Stewart Ngandu, 2013. "The Economy-wide Impacts of the South African Child Support Grant: a Micro-Simulation-Computable General Equilibrium Analysis," Cahiers de recherche 1303, CIRPEE.
    4. Margherita Scarlato & Giorgio D'Agostino, 2016. "Gender Disparities In The South African Labour Market: The Impact Of The Child Support Grant," Departmental Working Papers of Economics - University 'Roma Tre' 0210, Department of Economics - University Roma Tre.
    5. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. d'Agostino, Giorgio & Scarlato, Margherita, 2016. "Gender Inequality in the South African Labour Market: the Impact of the Child Support Grant," MPRA Paper 72523, University Library of Munich, Germany.
    7. Haroon Bhorat & Timothy Köhler & David de Villiers, 2023. "Can Cash Transfers to the Unemployed Support Economic Activity? Evidence from South Africa," Working Papers 202301, University of Cape Town, Development Policy Research Unit.
    8. Chitiga, Margaret & Tiberti, Luca & Maisonnave, Helene & Hoareau, Stephane & Robichaud, Véronique & Mabugu, Ramos & Ngandu, Stewart, 2012. "Analysis of the Economic Impacts of the South African Child Support Grant Via A Microsimulation-CGE Model," Conference papers 332237, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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