The child support grant and childbearing in South Africa: is there a case for a basic income grant?

Abstract

This is the first study in South Africa analysing the impact of the child support grant (CSG) on higher-order fertility behaviour based on a nationally representative dataset. The study uses the fifth wave of national income dynamics study (NIDS) survey data covering women from age 15 to 58 years to undertake the propensity score matching technique to ascertain whether the CSG grant drives fertility behaviour. The findings indicate that, while the CSG does not have a significant impact on fertility rates among teen mothers, older mothers from the age of 20 upwards to 58 years receiving the CSG have significantly more children compared to those that do not receive the grant, even after controlling for other relevant precursors and factoring in self-selection issues. This study underscores the need to consider the perverse incentives while designing social policy.

JEL classification::

• I38
• J13

Keywords:

• Child support grant
• perverse incentive
• fertility
• South Africa
• propensity score matching

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 $C^1$ is the effect of unobservable variables if there is treatment (G), and $C^0$ is the effect of unobservable variables if there is no treatment (G).