Government social protection and households’ welfare during the Covid-19 pandemic in South Africa

Abstract

PurposeThis study evaluates the impact of government social protection interventions on households’ welfare in South Africa.Design/methodology/approachThe study uses survey data comprising 393 observations and the multinomial logistic regression technique to analyse the effect of government interventions on households’ welfare. For robustness purposes, a negative binomial regression model is also estimated whose results corroborate the main results from the multinomial regression model.FindingsThe study’s findings show that government economic interventions through social protection significantly reduce the likelihood of a decrease in household income or consumption. COVID-19 grant/social relief of distress grant, unemployment insurance, tax relief and job protection and creation are all significant in sustaining household income and consumption.Practical implicationsThe findings have policy implications for social development. Specifically, the findings support the use of government social protection as a safety net for low-income groups in South Africa.Originality/valueThe study presents preliminary evidence on the effectiveness of several measures used to ameliorate the COVID-19-induced recession within the South African context.