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Evaluating the significance of cash transfers on household consumption

Evaluating the significance of cash transfers on household consumption The Old Age Pension (OAP) to elderly South Africans is one of the biggest programs in developing countries. It's a vital income source to many households because it puts a significant cash transfer into the hands of many poor households, and the sharp increase in its take‐up at the minimum eligibility age further demonstrates its importance. This paper estimates the OAP's impact on households’ food security, quality of water and sanitation facilities, where the last two are essential public health‐related outcomes. We find that the OAP has a significant and positive impact on food security, but not on the quality of drinking water and sanitation. We attribute the latter to the high fixed costs associated with access to quality drinking water and proper sanitation services and their nature as a form of public good. The paper further attempts to understand whether gender influences these outcomes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png African Development Review Wiley

Evaluating the significance of cash transfers on household consumption

Muchiri, Steve; Choi, Sun‐Ki
African Development Review , Volume 33 (4) – Dec 1, 2021
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References (47)

Publisher
Wiley
Copyright
© 2021 African Development Bank
ISSN
1017-6772
eISSN
1467-8268
DOI
10.1111/1467-8268.12606
Publisher site
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Abstract

The Old Age Pension (OAP) to elderly South Africans is one of the biggest programs in developing countries. It's a vital income source to many households because it puts a significant cash transfer into the hands of many poor households, and the sharp increase in its take‐up at the minimum eligibility age further demonstrates its importance. This paper estimates the OAP's impact on households’ food security, quality of water and sanitation facilities, where the last two are essential public health‐related outcomes. We find that the OAP has a significant and positive impact on food security, but not on the quality of drinking water and sanitation. We attribute the latter to the high fixed costs associated with access to quality drinking water and proper sanitation services and their nature as a form of public good. The paper further attempts to understand whether gender influences these outcomes.

Journal

African Development Review – Wiley

Published: Dec 1, 2021

Keywords: developing countries; old‐age pension; social cash transfers

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