Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82575
Authors: 
Bengtsson, Niklas
Year of Publication: 
2010
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2010:4
Abstract: 
We use a rapid introduction of an unconditional cash grant (child support) in South Africa to estimate the marginal propensity to consume and earn out of a permanent change in unearned income. We find that the marginal propensity to earn is about to -0.25 for single-adult households, and somewhat lower for households with more than one adult. A very small fraction of the grant is saved. All in all, the marginal propensities estimated here are all similar to those reported in comparable papers using US data. However, they stand in contrast to some results on conditional cash transfers in other developing countries.
Subjects: 
Social policy
Poverty reduction
Labor Supply
Earnings
Savings
Expenditure
Stone-Geary utility
JEL: 
J22
O23
H31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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