The Economics of Households in South Africa
Abstract: This chapter first provides a brief historical review of household formation and its disruption during the apartheid decades. It then uses national micro-data (1995–2018) to describe broad changes in household formation since the democratic transition. Among these trends, the chapter highlights a sizeable increase in household formation and a decrease in average household size, associated partly with a rise in single-person households and a fall in fertility rates. Gendered living arrangements have also changed considerably as the share of households with a co-resident couple has fallen. Specifically, the growth of households where all resident adults are either female or male has far exceeded overall household formation, and the share of children living only with their mother has risen apace. However, households also continue to be stretched to include members who live elsewhere for much of the year. The chapter then sketches the variation in economic resources across different household types, highlighting changes in recent decades.