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

Abstract

Purpose: This study evaluates the impact of government social protection interventions on households’ welfare in South Africa. Design/methodology/approach: The 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. Findings: The 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 implications: The 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/value: The study presents preliminary evidence on the effectiveness of several measures used to ameliorate the COVID-19-induced recession within the South African context.