Towards an Understanding of

Inter-Generational Relations in South Africa

Towards an Understanding of

Inter-Generational Relations in South Africa

IntroductionIntroduction

• The presentation concentrates on

economic wealth flows between

generations.• Both qualitative and quantitative data

are used to build the case.

BackgroundBackground

• Generations are population cohorts that share common traits;

• In this case, generations are conceptualised in terms of young, middle and older.

• Young= 18-24• Middle= 25-59• Older= 60+

Some Specific TraitsSome Specific Traits

• Older persons constitute 7.2% will reach 14.2% in the next 40 years

• Low sex ratio among older persons- this means that there isn’t an even balance between men and women

• Youth bulge- a large portion of the population is between the ages 15 and 24

1960

20 15 10 5 0 5 10 15 20

0-4

10-14

20-24

30-34

40-44

50-54

60-64

70-74

80 +

Ag

e g

rou

p

% of the population

Demographic Change over TimeDemographic Change over Time

2007

15 10 5 0 5 10 15

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80 +

Ag

e g

ro

up

% of the population

Males Females

Demographic Change over TimeDemographic Change over Time

Manifestations of Traditions?Manifestations of Traditions?

•Roles and Reciprocity

•Co-Residence

•Inter-generational Care

Roles and ReciprocityRoles and Reciprocity

• Mediated by social class, gender, marital status and household size;

• Older men for example, tend to be absent from roles that require care and reciprocity;

• Affluent youths tend to give, but from a distance;

• Grandparents, although sometimes on the receiving end, act as safety net for all generations.

Fathers more likely to be missingFathers more likely to be missing

• Only 53% of young people grew up

with fathers

• High male mortality

• High births from unstable sexual

unions.

Co-residence and social relationsCo-residence and social relations

Household types of older personsHousehold types of older persons

Type of Household Whites Africans

One generational household

 78.3 18.9

Two generational household

15.3 14.8

Three generational household

4.3 41.2

Skipped generational household

1.9 24.0

The timing of the departure of young people from childhood

households

The timing of the departure of young people from childhood

households

0

10

20

30

40

50

60

70

80

90

100

17 18 19 20 21

Africans

Coloureds

Indians

Whites

Patterns of co-residencePatterns of co-residence

• Older generation are more likely to absorb younger

generations into their households

• Members of the middle generation who absorb older

persons into their Households are on the decline

• Indication that more older persons supporting younger

generations

• Economic stress on the younger generation and old-

age pension contribute to this trend

Wealth Flows Between Generations

Wealth Flows Between Generations

Emerging Trends

The cycle of generational public andprivate transfers

The cycle of generational public andprivate transfers

Grandparents

Parents State

Grandchildren

Age-sex distribution of households with no regular income: Youth Poorest

Age-sex distribution of households with no regular income: Youth Poorest

Fig. 2 Age-sex distribution of Individuals from HH with no income, 2007

12 10 8 6 4 2 0 2 4 6 8

0-45-9

10-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-79

80+

Males (%) Females (%)

Economic flow modelsEconomic flow models

Two emerging models:

• Unidirectional Wealth Model

• The wealth flows from parent to children when children are young

• A long period of lull- no transfers

• Then a windfall when wealth finally flow from parents to children in the form of inheritances

Economic Flow Models (contd.)Economic Flow Models (contd.)

• Multidirectional Flow Models

• Wealth flow from parents when they are young

• Children expected to send remittances to parents (more likely to be irregular and symbolic in South Africa)

• Parents assist children during economic and social crisis

“I know that life is hard in the city. When XX gets money she sends it. When she has not sent anything, I pray for her because I know life is hard in the city. She also has to

train her two children because she is a single parent”

“I know that life is hard in the city. When XX gets money she sends it. When she has not sent anything, I pray for her because I know life is hard in the city. She also has to

train her two children because she is a single parent”

A participant mother

ConclusionConclusion

• South Africa straddles between the two models• Both not very successful• More understanding required of other countries’

generational wealth transfer models• Understanding differences in models is key to

locating the problem precisely.• Indications are that South Africa’s generational

relations are not conducive to wealth building and thus it may be time to rethink some traditions in this regard.

Thank YouThank You