Determinants of labour force participation in the North West province of South Africa

Based on data extracted from the 1995 October Household Survey of Statistics South Africa, this study has found that potential income is a major factor in labour force participation by African women in the North West province of South Africa. Other significant determinants of participation for both genders are age, education, region, marital status and relationship to the head of the household. The results imply that significant discrimination against African women still exists in the North West province, which partly explains the much lower participation rate for African women (64 per cent), compared with that of African men (86,5 per cent). The study supports the North West government's development strategy of developing human resources to eradicate poverty.     

Food poverty,hunger and household production in rural Eastern Cape households

More than two decades since the advent of democracy in South Africa, the place of small-scale agriculture in rural development, poverty alleviation and food security remains ambiguous and highly contested. However, there is now some new evidence that official income poverty estimates in South Africa may be underestimating the contribution of rural, land-based livelihoods when measuring household well-being. This paper aims to explore this possibility further by identifying how household production activities are associated with improved food security among rural Eastern Cape households in the former homelands. The analysis is based on data from Statistics South Africa’s 2008/9 Living Conditions Survey and its annual General Household Surveys. In adopting a food poverty lens, the findings suggest that hunger levels are lower among farming households in the Eastern Cape even though a higher percentage of these households (relative to non-farming households) live below the national food poverty line. The paper concludes by discussing some implications for policy.     

Analysing post-apartheid poverty trends by geo-type, 1997–2012: The understated role of urbanisation and social grants

This article investigates poverty trends in post-apartheid South Africa with an explicit focus on differences between rural and urban areas. Using nationally representative household survey data from 1997–2012, I first describe changes in population characteristics and household access to different income sources and services, by urban–rural geo-type. Income data are then used to generate poverty statistics, which cast light on divergent trends in rural and urban areas. Next, I employ a poverty decomposition method to further explore some potential reasons why the poverty trends in rural and urban areas have differed. Data from the Afrobarometer are then used to probe how subjective non-monetary welfare has changed over time across geo-types. The evidence from all surveys suggests that the dramatic increase in access to services and social grants in rural areas has played a vital role in poverty reduction.     

Rural–urban differences in parental spending on children's primary education in Malawi

Using Malawian data, this paper answers two interrelated questions: are there rural–urban differences in the factors that influence the probability that a household spends or does not spend on own children's education; and are there rural–urban differences in the factors that affect educational expenditure if a household decides to spend? Computed elasticities indicate that spending on education by rural households is more sensitive to changes in income compared with urban households, suggesting that spending on education in rural areas is a luxury good. In both areas, a mother's employment and education has a larger impact on spending compared with those of a father. Urban households compared with their rural counterparts are more sensitive to the quality of access to primary schools. We find no evidence of gender bias in school spending in urban areas, but rural households exhibit bias in favour of boys.     

An analysis of the determinants of labour force participation and unemployment in South Africa's North-West province

This article uses a probit model to estimate the determinants of labour force participation and unemployment in South Africa's North-West province. Data from three surveys are used, namely the 1993 Saldru survey, the 1995 CSS (now Statistics SA) survey and a survey conducted in 1997 by the authors. It finds that gender, location (rural or urban), education level, and family structure and relations are significant determinants of unemployment in the province. Because the North-West is a rural province, the results are indicative of the unemployment challenges in South Africa's rural areas. Thus, unless job creation initiatives have a specific rural and gender (female) bias, rural unemployment in South Africa may not be significantly reduced.     

Financial instruments of the poor: initial findings from the South African Financial Diaries study

A new data set called the South African Financial Diaries has been produced, based on a sample of 166 households, drawn from three different areas in South Africa – Langa, Lugangeni and Diepsloot. The selected households represent a range of dwelling types and wealth categories. A unique methodology was used to create a year-long daily data set of every income, expense and financial transaction used by every one of these households. Within this sample, households used, on average, 17 different financial instruments over the course of the study year. A composite household portfolio, based on all 166 households, would have an average of four savings instruments, two insurance instruments and 11 credit instruments. The same composite household portfolio would have about 30 per cent formal instruments and 70 per cent informal instruments. Interestingly, it was found that rural households use as many financial instruments as urban ones.     

Re-estimating gender differences in income in South Africa: The implications of equivalence scales

Most studies of poverty and inequality in South Africa measure individual welfare by deflating total household resources, such as income, by household size. This per-capita method makes no adjustments for the different consumption needs of children or for household economies of scale. However, in addition to being more likely to live in households where average per-capita household income is lower compared with men, we show that women in South Africa also live in significantly larger households which include more children. These gendered differences in household composition are driven to a large degree by low rates of co-residency between men and women. We therefore investigate how adjusting household resources for the presence of children and economies of scale affects measures of the gender gap in income.     

Development policy and water services in South Africa: an urban poverty perspective

This paper explores the impact of overall macroeconomic development policy on water service delivery policy and urban poverty in South Africa. It scrutinises ambiguous definitions of ‘urban’ in the literature, which tend to obscure the extent of urban poverty in this country. This is crucial given that a large proportion of the urban poor live in informal settlements, which are sometimes lumped with rural areas. Informal settlements are generally characterised by limited essential services such as housing, water supply, storm-water facilities and sanitation services. Water services, like other social services, retain the racial imprint of apartheid. Consequently, water policy in South Africa attempts to address water issues from an equity perspective. By analysing the effects of the tariff subpolicy within the water policy, the paper recommends that free basic water should be made available only to poor households.     

Housing inequality and housing poverty in urban China in the late 1990s

This paper discusses housing inequality and housing poverty in urban China in the late 1990s, using original household surveys. Focuses are on the distributive implications of the privatization of public-owned housing and the wave of rural–urban migration. Estimates of the imputed rent function for owned housing purchased at discount prices indicates that meritocracy and political credentialism work differently as determinants of housing inequality. The paper confirms that there has been a large disparity in housing conditions between urban and migrant households, and that a new type of housing poverty has been emerging among migrant households.     

Understanding urban poverty in two high-density suburbs of Harare,Zimbabwe

ABSTRACT

Urban communities are heterogeneous and averages mask inequities and deprivations among poor and rich urban communities. This article examines the situation of households residing in two low-income, high-density suburbs of Harare, Zimbabwe. The aim of the research was to contextualise urban poverty by looking at selected urban communities and vertically analysing the patterns and determinants of poverty. A household survey was administered to 1000 households and qualitative data were collected through focus group discussions and key informant interviews. The study found high levels of income poverty and also found differences in poverty experiences between the two suburbs. The major proximate determinants of poverty were large family size; low education level of the household head; lack of income from permanent employment; low cash transfers; and short length of residence in the suburb. Increasing household income consumption can be addressed through scaling-up industries, which would result in more quality employment.     

A quantitative determination of the food security status of rural farming households in the Northern Province of South Africa

The majority of South Africans living in rural areas are food insecure despite high levels of national food self-sufficiency. The household food security position of two groups of rural farming households in the Venda region was evaluated quantitatively: one group produces vegetables that are sold or consumed locally, the other group produces cash crops – mangoes and other subtropical fruits. Using the collected data, food availability and energy, protein and fat requirements were calculated and balances derived. It was found that more than 80 per cent of the households had a negative balance of energy, protein and fat intake. The average energy, protein and fat coverage consumption was the same for both groups of farmers. A number of agricultural determinants were tested, but only non-agricultural determinants were found to be significant. These include household size, household (food) expenditure and proportion of the budget spent on food.     

A descriptive study of the dynamics of relative poverty in the Western Cape province of South Africa

This article provides statistical estimates of the level of relative poverty over time in the Western Cape province of South Africa, using data sets from Statistics South Africa. It seems that relatively large numbers of Black and Coloured households are chronically poor, and that substandard education and living conditions are likely to be causing this situation. The authors propose short-term and long-term poverty alleviation plans that aim to increase accessibility to social services and to raise educational levels, to ensure sustainable livelihoods for the people concerned.     

Vulnerability of Vietnamese Elderly to Poverty: Determinants and Policy Implications*

We identify determinants of elderly poverty in Vietnam using household survey data from 2004. The elderly living in urban and rural areas face significantly different conditions. Some factors impact poverty in both urban and rural areas (e.g. age, marital status, region and remittance receipts), some factors are insignificant in both areas (e.g. living arrangements and household head characteristics) and some factors have a differing impact in the two areas (e.g. gender, ethnicity, and household composition and size). With these findings, we formulate policy priorities, including reducing regional disparities, promoting the rural economy and reforming social security.     

Child Labour in the Philippines: Determinants and Effects

This paper analyses the supply-side socioeconomic determinants of child labour in the Philippines using data from the National Household Survey and the Labour Force Survey of the Philippines. The research methodology is that of a sequential probit model which assumes that household decisions are made in a hierarchical manner. Using this model, the impact of various household and economic characteristics on the probability of child labour is estimated. The findings highlight specific populations that should be targeted, for example, single working mothers in urban areas and poor households in rural areas. Working towards elimination of child labour will involve a multi-angled policy approach with policies complementing each other.     

Debt and household finance: evidence from the Financial Diaries

The Financial Diaries data-set is a unique, new set of year-long daily income, expense and financial transactions for households from three different areas of South Africa. These data show that over-indebted households (those that spend 20 per cent or more of their gross monthly income on debt) do not fit one homogeneous profile. Formal debt tends to be responsible for over-indebtedness in the urban areas, while in the rural areas the cause tends to be informal debt. In the urban areas high indebtedness is more prevalent among medium-income and high-income households, whereas in the rural areas it occurs at all income levels. High indebtedness in grant-dependent rural households tends to be persistent, whereas in wage-dependent urban households it is often short-lived. These findings present a new financial picture of poor rural populations that is unlikely to be touched by recent policy measures to address over-indebtedness.     

Poverty in Zambia: Levels,patterns and trends

This article presents the results of the analysis of levels, patterns and trends in the incidence of poverty in Zambia between 1991 and 1998, based on data captured in nationally representative surveys. In 1998, about 73 per cent of the households in Zambia were poor, the majority of which were extremely poor. Most poor households were in rural areas, with wide inter- and intra-provincial and district variations. The incidence of poverty also varied according to employment status and sector, as well as by district, gender, marital status, education and stratum of head of the household. In general, households headed by females, those without any formal education, unpaid family workers, the inactive, the self-employed, and those in agriculture, forestry and fishing recorded the highest incidence of poverty, with those employed in private households being affected the worst. In spite of the general increase in poverty nationally, most rural provinces registered declines while urban areas experienced increases in the incidence of poverty during the period under review. Furthermore, except for the agricultural/forestry, mining and quarrying, and electricity and gas sectors, the incidence of poverty increased in all the other sectors while remaining almost the same in the real estate sector. The direction and magnitude in the incidence of poverty between 1991 and 1998 were also associated with gender, education, employment status, employment sector, and residence of head of the household, as well as size of the household. Based on the analysis, the article strongly recommends revision in the measurement of poverty, investigation of the types of coping strategies adopted by the poor, and the extent to which these impact on the general well-being and productivity of vulnerable households in Zambia. The need for more qualitative data has also been highlighted.     

Strengthening institutional safety nets in South Africa: Sharing operation hunger's insights and experiences

Poverty and malnutrition are major problems in South Africa, especially among black people in rural areas. The poorest are heavily dependent on social pensions, remittances, low wages, piece jobs and, to a very small extent, household agriculture. Industrial safety nets are weak and do not necessarily help the vulnerable to overcome their poverty. This article draws on the experience of Operation Hunger, a South African NGO founded in 1980, to examine the impact of poverty‐alleviation programmes on the recipients. The article reviews the strategies employed by the government and NGOs to strengthen vulnerable households ‐food aid, public works and agricultural programmes ‐ drawing on Operation Hunger's experience in these areas. The article concludes that targeting, monitoring and evaluating, and piloting development programmes are crucial, and stresses the importance of NGOs in this regard.     

Changing Sources of Household Income,Poverty, and Sectoral Inequality in Sri Lanka, 1990–2006

Comparing dynamic changes in household income and poverty among urban, rural, and estate sectors in Sri Lanka from 1990 to 2006, this study finds that a shift of household income away from farm to nonfarm sources is accompanied by a significant improvement in household income and reduction in poverty, particularly in the rural sector. Major contributing factors are the rise in returns to labor, in general, and educated labor, in particular, due to the development of the nonfarm labor market. Persistently low income among estate households can be explained primarily by the limited availability of nonfarm employment opportunities and the low education levels of working members.     

Determinants of Poverty Status in Rwanda

This study finds determinants of poverty status using the 2010–11 Integrated Household Living Conditions Survey (EICV3) and suggests policy implications for poverty reduction in Rwanda. Characteristics of households related to poverty status are considered in an ordered probit model and marginal effects are calculated. Policies towards supporting a female household, controlling the birthrate of a household and alleviating regional disparity, especially with a focus on rural areas and the Southern Province will be effective. In addition, supporting farmers who do not own a farm and increasing vocational programmes may be also helpful for poverty reduction in Rwanda. Expanding the land use consolidation programme with a facilitating food market may be beneficial.     

WILLINGNESS TO PAY FOR WATER SERVICE IMPROVEMENTS IN MIDDLE‐INCOME URBAN HOUSEHOLDS IN SOUTH AFRICA: A STATED CHOICE ANALYSIS

Water provision is not only an economic issue in South Africa, but also of social and political significance. One of the important reasons for increasing the brief of local government is so that services can be provided taking into account heterogeneous community preferences. However, measuring such preferences for water, which has some public good characteristics, is a challenge. This study elicits household willingness to pay for improvements in water attributes in Grahamstown West in the Eastern Cape, using conjoint analysis. Results show a fairly high McFadden R² and that Bacteria Count, Discolouration, Interruptions to supply and Price are statistically significant determinants of choice. The paper also suggests ways in which the model could be adapted for use in lower income and education households.