LARGE GASH TRANSFERS TO THE ELDERLY IN SOUTH-AFRICA

We examine the social pension in South Africa, where large cash sums-a bout twice the median per capita income of African households-are paid to people qualified by age but irrespective of previous contributions . We present the history of the scheme and use a 1993 nationally repre sentative survey to investigate the redistributive consequences of the transfers, documenting who receive the pensions, their levels of livi ng, and those of their families. We also look at behavioural effects, particularly the effects of the cash receipts on the allocation of inc ome to food, schooling, transfers, and savings.