Towards an Understanding of Inter-Generational Relations in South Africa

Introduction The presentation concentrates on economic wealth flows between generations. Both qualitative and quantitative data are used to build the case.

Background Generations are population cohorts that share common traits; In this case, generations are conceptualised in terms of young, middle and older. Young= Middle= Older= 60+

Some 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

Demographic Change over Time

Manifestations of Traditions? Roles and Reciprocity Co-Residence Inter-generational Care

Roles 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 missing Only 53% of young people grew up with fathers High male mortality High births from unstable sexual unions.

Co-residence and social relations

Household types of older persons Type of HouseholdWhites Africans One generational household Two generational household Three generational household Skipped generational household

The timing of the departure of young people from childhood households

Patterns 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 Emerging Trends

The cycle of generational public and private transfers Grandparents Parents State Grandchildren

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

Economic 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.) 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” A participant mother

Conclusion 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 You