Social Grants, Welfare, and the Incentive to Trade-Off Health for Income among Individuals on HAART in South Africa

AIDS and Behavior, Vol. 14, pp 1393-1400, 2010

8 Pages Posted: 17 Nov 2009 Last revised: 27 Jul 2014

See all articles by Atheendar Venkataramani

Atheendar Venkataramani

University of Pennsylvania - Perelman School of Medicine

Brendan Maughan-Brown

University of Cape Town (UCT)

Nicoli Nattrass

University of Cape Town - Faculty of Commerce - School of Economics

Jennifer Prah Ruger

University of Pennsylvania - School of Social Policy & Practice; University of Pennsylvania - Perelman School of Medicine

Date Written: December 23, 2009

Abstract

South Africa’s government disability grants are considered important in providing income support to low-income AIDS patients. Indeed, anecdotal evidence suggests that some individuals may opt to compromise their health by foregoing highly active antiretroviral treatment (HAART) to remain eligible for the grant. In this study, we examined the disability grant’s importance to individual and household welfare, and the impact of its loss using a unique longitudinal dataset of HAART patients in Khayelitsha, Cape Town. We found that grant loss was associated with sizeable income drops and changes in household composition. However, we found no evidence of individuals choosing illness over grant loss. Our analysis also suggested that though the grants officially target those too sick to work, some people were able to keep grants longer than expected, and others received grants while employed. This has helped cushion people on HAART, but other welfare measures need consideration.

Keywords: AIDS, Highly Active Antiretroviral Therapy (HAART), Incentives, Social Security

JEL Classification: I11, I18

Suggested Citation

Venkataramani, Atheendar and Maughan-Brown, Brendan and Nattrass, Nicoli and Prah Ruger, Jennifer, Social Grants, Welfare, and the Incentive to Trade-Off Health for Income among Individuals on HAART in South Africa (December 23, 2009). AIDS and Behavior, Vol. 14, pp 1393-1400, 2010, Available at SSRN: https://ssrn.com/abstract=1507055

Atheendar Venkataramani

University of Pennsylvania - Perelman School of Medicine ( email )

423 Guardian Drive
Philadelphia, PA 19104
United States

Brendan Maughan-Brown

University of Cape Town (UCT) ( email )

Private Bag X3
Rondebosch, Western Cape 7701
South Africa

Nicoli Nattrass

University of Cape Town - Faculty of Commerce - School of Economics ( email )

Rondebosch
Cape Town, 7700
South Africa

Jennifer Prah Ruger (Contact Author)

University of Pennsylvania - School of Social Policy & Practice ( email )

3701 Locust Walk
Philadelphia, PA 19104-6214
United States

University of Pennsylvania - Perelman School of Medicine

423 Guardian Drive
Philadelphia, PA 19104
United States

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