Changes in the Role of Employment Income: Public Transfers and Remittances in the Alleviation of Income Poverty Over the Course of South Africa's Transformation
Democracy opened the door for transformation in South Africa. In the past decade, various laws, policies and programmes have been implemented with the aim of putting into effect the principles of the new South African Constitution and the Bill of Rights as well as improving the lives of the people of South Africa. Poverty alleviation is central in national and international policy frameworks. The Accelerated and Shared Growth Initiative of South Africa (ASGISA), amongst others, has the objective of halving poverty in South Africa by 2014. This paper aims to investigate how the relative contribution of employment income, public transfers and remittances to the alleviation of income poverty differ between core and dynasty households. Data from the Kwazulu-Natal Income Dynamics Study (KIDS), which interviewed a panel of African households from Kwazulu-Natal in 1993, 1998 and 2004, are used for this purpose. Econometric methods such as poverty probit-regression models together with a vector of independent variables are employed to determine the nature and magnitude of changes in the roles of these three main income sources in the alleviation of income poverty.
Keywords: Poverty, Employment Income, Public Transfers, Remittances, Migration, Poverty Lines, South Africa, Kids
Lecturer, Department of Economics, University of the Free State