Government response to poverty and unemployment in South Africa : A micro-level evalutation of the Expanded Public Works Prgramme

Abstract: Using data from the Labour Force Survey conducted by Statistics South Africa twice yearly this thesis intend to evaluate the Expanded Public Works Programme regarding its effectiveness in creating employment and raising income in households with participating individuals. The South African labour market is well known for its high rates of unemployment and also its segregation, primarily between black and white people, but also young people are having a hard time finding jobs. In order to fight these problems the South African government has launched the Expanded Public Works Programme(EPWP) which provides low- semi-skilled labour with short term employment, the primary target groups being black and coloured people, women, disabled people and young people. Our findings indicate that the EPWP does not significantly enhance the individual’s probability of being employed, nor does it raise the per capita income of households with participating individuals.