Inter-household transfers in South Africa: prevalence, patterns and poverty

Abstract

In this paper, I use unique and detailed data, collected in four waves of the National Income Dynamics Study, to provide a descriptive overview of inter‐household transfers in South Africa, including their prevalence and size, and how they compare with other developing countries. I take advantage of the panel nature of the data to investigate whether the likelihood that individuals receive or send transfers responds to changes in the economic wellbeing and composition of the individual’s household, and to the receipt of public transfers or social grants. I also use the panel data to explore persistence in private transfers over time, and to compare the relative contribution of private and public transfers to poverty reduction.