Household Survival Strategies during COVID-19: Evidence from Panel Data in South Africa

Abstract

After an income shock, households reduce spending and asset holding, diversify income sources, and change household composition or location. Migration is common in South Africa, often resulting in food insecurity. During the COVID-19 pandemic, the unemployment rate surpassed thirty percent, accompanied by extreme poverty levels. The social relief of distress grant, the old age pension, and employment income all significantly reduced food insecurity. SRD receipt reduced household hunger levels by ten percent, and severe hunger in children by more than twenty percent in vulnerable households. In contrast, mobility strategies did not effectively prevent food insecurity in households during the pandemic.