Putting children first? : tax and transfer policy and support for children in South Africa

This thesis considers the extent to which tax and transfer policies in South Africa support children between 2000 and 2008. The analyses are carried out using a four-dimensional analytical framework which separates the dimensions of welfare ideology, policy aims, policy instruments and welfare outcomes. This approach is adopted in recognition of the fact that the extent to which tax and transfer policies support children is seen to vary according to the dimension of analysis. The analysis of welfare ideology, policy aims and policy instruments is undertaken by considering key legislative texts, including the Bill of Rights in the South African Constitution, budget speeches and policy documents. Welfare outcomes are analysed at the individual and household level using microsimulation modelling. A microsimulation model for South Africa, SAMOD, is developed specifically for these analyses. The findings of this thesis add conceptual and empirical understanding to the impact of tax and transfer policies on children. Children are found to be supported by policy to some extent, and have been prioritised in reforms to social assistance. However, recent reforms to tax policy have not benefited children and the analyses indicate that child poverty rates in South Africa could be lower than they are at present had the government pursued alternative policy reforms. The construction of the microsimulation model SAMOD is a valuable tool to facilitate future policy evaluation in South Africa. Further development of SAMOD is recommended to continue to progress and enhance debates on policy reforms. In addition, this thesis highlights some key areas for future research including developing further understanding of the patterns of inter and intra-household income allocation and the impact that this may have on poverty measures for different groups.