Cash transfers and quality of life among households in the Eastern Cape, South Africa: Application of a generalized linear model

Abstract

Cash transfers have become an important tool for reducing poverty and improving the well-being of households in many developing countries including South Africa. However, cash transfers' effects on household quality of life are still debatable.  This study examined the relationship between cash transfers and quality of life, controlling various household characteristics. The study used the 2021 South African General Household Survey with a sample of 1,499 households selected through a stratified random sampling technique. Data were analyzed using the contingency table technique and a Generalized Linear Model. The results showed that cash transfer families had a greater quality of life than non-transfer households. The results of the GLM analysis revealed that public safety, health, infrastructure, access to remittances and population group were important predictors of quality of life among the households in the research. The results also showed that education, economic environment and gender had no significant effect on the households’ quality of life while age group had a minimal effect. The study concludes that cash transfers (both social grants and remittances) have an impact on households’ quality of life. The study’s findings suggest that policymakers should continue to implement cash transfer programs to improve the well-being of households and improve public safety, health, infrastructure, education and the economic environment in the province.