Socio-economic Impacts of COVID-19 on household well-being: Evidence from South Africa
- Authors: Lomas, Djamella
- Date: 2025-04
- Subjects: COVID-19 (Disease) -- Economic aspects , Cost and standard of living -- South Africa , Income -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/71915 , vital:79151
- Description: Following the outbreak of the Coronavirus (COVID-19) pandemic in Wuhan, China in 2019, several studies around the world have been published on the economic impact of the novel Coronavirus - COVID-19 – on individuals, financial markets, governmental responses to the pandemic and related rates of mortality and morbidity. Literature suggests that the outbreak of COVID-19 has delivered a devastating impact on businesses and economies in many developed and developing countries around the world. However, there is a paucity of empirical studies on the virus’s socio-economic impacts on the well-being of households, particularly those in the Global South. Thus, using descriptive statistics, logistics and multiple regression techniques, this study examines the socio-economic impacts of COVID-19 on household wellbeing in South Africa using National Income Dynamics Study (NIDS) wave 5 and National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) wave 2 data. In addressing the above objective, the following research questions were addressed: (1) What are the impacts of COVID-19 on household wellbeing such as household income, food security and subjective wellbeing? (2) Which households (based on household characteristics) are more vulnerable to the impacts of COVID-19? The study finds that COVID-19 has had a significant impact on household wellbeing, reducing household income, increasing food insecurity (increased hunger) and worsening household subjective wellbeing. Furthermore, the findings show that rural households, households with unemployed heads, female-headed, African, Coloured, and Asian households, and households in Kwazulu-Natal (KZN) province are associated with lower household income during the pandemic while those with tertiary educated heads and those in the North -West and Free State provinces are associated with higher household income. In terms of food security, unemployed households, African households, and households in the Western Cape, KZN, Limpopo and Gauteng are associated with food shortages (hunger) while those with tertiary, diploma-educated heads, are less likely to experience food shortages. While rural households are associated with better household subjective wellbeing, a lower level of wellbeing is associated with households in the provinces of KZN and the North-west, as well as households with educated heads.Based on the findings, it is recommended that addressing low household income and hunger through social welfare transfers such as the Unemployment Insurance Fund (UIF) and Stress Relief Distress Grant (SRDG) and other measures to combat food insecurity, needs to be prioritised. Furthermore, regarding subjective wellbeing issues, because poor mental health is associated with a variety of negative outcomes, including early mortality, disrupting the pathways from hunger to depressive symptoms needs to be a cornerstone of South Africa’s social development and mental health policy. Special policy intervention such as widening the inclusion criteria for the SRDG to include recipients of the child support grant and old-age pension in order to support low-income households is recommended as these categories of households are more vulnerable to the impacts of COVID-19 relative to affluent households. Apart from the potential empirical contribution to literature, the results of this study also provide essential ingredients that can shape social transfer policy direction to improve the overall well-being of households. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2025
- Full Text:
- Date Issued: 2025-04
- Authors: Lomas, Djamella
- Date: 2025-04
- Subjects: COVID-19 (Disease) -- Economic aspects , Cost and standard of living -- South Africa , Income -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/71915 , vital:79151
- Description: Following the outbreak of the Coronavirus (COVID-19) pandemic in Wuhan, China in 2019, several studies around the world have been published on the economic impact of the novel Coronavirus - COVID-19 – on individuals, financial markets, governmental responses to the pandemic and related rates of mortality and morbidity. Literature suggests that the outbreak of COVID-19 has delivered a devastating impact on businesses and economies in many developed and developing countries around the world. However, there is a paucity of empirical studies on the virus’s socio-economic impacts on the well-being of households, particularly those in the Global South. Thus, using descriptive statistics, logistics and multiple regression techniques, this study examines the socio-economic impacts of COVID-19 on household wellbeing in South Africa using National Income Dynamics Study (NIDS) wave 5 and National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) wave 2 data. In addressing the above objective, the following research questions were addressed: (1) What are the impacts of COVID-19 on household wellbeing such as household income, food security and subjective wellbeing? (2) Which households (based on household characteristics) are more vulnerable to the impacts of COVID-19? The study finds that COVID-19 has had a significant impact on household wellbeing, reducing household income, increasing food insecurity (increased hunger) and worsening household subjective wellbeing. Furthermore, the findings show that rural households, households with unemployed heads, female-headed, African, Coloured, and Asian households, and households in Kwazulu-Natal (KZN) province are associated with lower household income during the pandemic while those with tertiary educated heads and those in the North -West and Free State provinces are associated with higher household income. In terms of food security, unemployed households, African households, and households in the Western Cape, KZN, Limpopo and Gauteng are associated with food shortages (hunger) while those with tertiary, diploma-educated heads, are less likely to experience food shortages. While rural households are associated with better household subjective wellbeing, a lower level of wellbeing is associated with households in the provinces of KZN and the North-west, as well as households with educated heads.Based on the findings, it is recommended that addressing low household income and hunger through social welfare transfers such as the Unemployment Insurance Fund (UIF) and Stress Relief Distress Grant (SRDG) and other measures to combat food insecurity, needs to be prioritised. Furthermore, regarding subjective wellbeing issues, because poor mental health is associated with a variety of negative outcomes, including early mortality, disrupting the pathways from hunger to depressive symptoms needs to be a cornerstone of South Africa’s social development and mental health policy. Special policy intervention such as widening the inclusion criteria for the SRDG to include recipients of the child support grant and old-age pension in order to support low-income households is recommended as these categories of households are more vulnerable to the impacts of COVID-19 relative to affluent households. Apart from the potential empirical contribution to literature, the results of this study also provide essential ingredients that can shape social transfer policy direction to improve the overall well-being of households. , Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2025
- Full Text:
- Date Issued: 2025-04
Determinants of household savings in South Africa
- Authors: Malindini, Kholiswa
- Date: 2016
- Subjects: Cost and standard of living -- South Africa , Home economics -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/8436 , vital:26356
- Description: This study empirically evaluates the determinant of household savings in South Africa (1985- 2013). The study used co-integration and Vector Error Correction Mechanism to determine the relationship between household savings and the selected explanatory variables. The study made use of a quarterly time series data sets from the SARB quarterly bulletin. The long-run relationship between savings and its determinants was examined using the procedure suggested in the literature by Johansen. The results of the co-integration tests suggest that there is a long-run relationship between savings and household wealth. The results suggest that wealth is a main determinant of household savings in the long run. However, the impulse response function and the variance decomposition indicated that household debt is dominant in explaining the variations in household savings better than other explanatory variables confirm. On the other hand, household debt, household disposable income and cpi (inflation) and interest rates have negative effects on household savings in the long run. Further, the estimated results revealed that disposable income, interest rate and inflation have statistically significant influence on household savings in South Africa. The implication of the results obtained from impulse response and variance decomposition is that South Africa has liberalized its financial sector to a large extent over the past decade such that households are over indebted. The main reasons for the decline in savings in South Africa is easy availability of Credit which encouraged consumers to take out loans, the rising house prices which encouraged consumers to borrow because of their positive wealth effect, Cultural/Social trends encouraging an attitude of borrowing and spending and lastly low interest rates (both in nominal and real terms). To this end, the study suggests that the South African National Credit Regulator conduct a credit audit to spot-check credit providers’ compliance with the provisions on reckless credit and over-indebtedness. More focus should be placed on indirect measures for preventing over-indebtedness, for example education. It is recommended that governmental or private organisations should set up educational programmes to improve information and advice on the risks attached to consumer credit. It is further suggested these programmes focus on money management for use in schools be made compulsory so as to raise awareness levels and establish financial literacy from an early age. This recommendation is based on the principle that prevention is better than cure.
- Full Text:
- Date Issued: 2016
- Authors: Malindini, Kholiswa
- Date: 2016
- Subjects: Cost and standard of living -- South Africa , Home economics -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/8436 , vital:26356
- Description: This study empirically evaluates the determinant of household savings in South Africa (1985- 2013). The study used co-integration and Vector Error Correction Mechanism to determine the relationship between household savings and the selected explanatory variables. The study made use of a quarterly time series data sets from the SARB quarterly bulletin. The long-run relationship between savings and its determinants was examined using the procedure suggested in the literature by Johansen. The results of the co-integration tests suggest that there is a long-run relationship between savings and household wealth. The results suggest that wealth is a main determinant of household savings in the long run. However, the impulse response function and the variance decomposition indicated that household debt is dominant in explaining the variations in household savings better than other explanatory variables confirm. On the other hand, household debt, household disposable income and cpi (inflation) and interest rates have negative effects on household savings in the long run. Further, the estimated results revealed that disposable income, interest rate and inflation have statistically significant influence on household savings in South Africa. The implication of the results obtained from impulse response and variance decomposition is that South Africa has liberalized its financial sector to a large extent over the past decade such that households are over indebted. The main reasons for the decline in savings in South Africa is easy availability of Credit which encouraged consumers to take out loans, the rising house prices which encouraged consumers to borrow because of their positive wealth effect, Cultural/Social trends encouraging an attitude of borrowing and spending and lastly low interest rates (both in nominal and real terms). To this end, the study suggests that the South African National Credit Regulator conduct a credit audit to spot-check credit providers’ compliance with the provisions on reckless credit and over-indebtedness. More focus should be placed on indirect measures for preventing over-indebtedness, for example education. It is recommended that governmental or private organisations should set up educational programmes to improve information and advice on the risks attached to consumer credit. It is further suggested these programmes focus on money management for use in schools be made compulsory so as to raise awareness levels and establish financial literacy from an early age. This recommendation is based on the principle that prevention is better than cure.
- Full Text:
- Date Issued: 2016
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