90 CHAPTER 6


to education from having healthier and better-nourished students. Neverthe- less, expenditures contribute to the educational impacts of cash transfers. Education spending was one issue examined in a study of social grants by Booysen (2004b) in two communities in South Africa’s Free State Province in 2001–02. This study compared HIV- and AIDS-affected households (defined as experiencing morbidity or mortality with at least one person known to be HIV positive or to have died in the past six months) with nonaffected households. An earlier study by Booysen et al. (2004) found that AIDS-affected house- holds spent less on education than nonaffected households, probably due to expenditures on healthcare and funerals, the need to take children out of school to help the household cope with illness and death, or the inability to pay for school fees. Comparing employment with grant income, Booysen (2004b, 22–23) found that employment income led to greater expenditures on food, educa- tion, and healthcare. Grant income resulted in a higher rate of increase in food expenditures compared to employment income. However, social grants did not increase expenditures on education; in fact, receipt of the CSG was associated with a reduction in education spending.3 There are a few possible explanations for these results. One is that people prefer to use the additional income from grants to increase their food intake. Another is that the CSG is used for the entire family, not for specific child-based expenditures. Booysen clarifies that given the small sample size and purposive sampling, the findings cannot be generalized to other parts of South Africa. Still, at least where these spending patterns hold, Booysen asks whether reaching school-age chil- dren more directly might require grants administered by the education sys- tem, for example, via a system paying for school fees. In Malawi, recipients reported spending some of the cash transfer from


the DECT program on school uniforms, pens, books, and other education costs, but this amount was very small: between January and March 2007, an average of only 3 percent of the transfer was spent on education (Devereux et al. 2007, 38, 72). In the FACT program in Malawi, education and health expendi- tures are reported together, so we cannot disaggregate education spending; however, the average for both between January and March 2007 was 9.7 per- cent of total expenditures. It appears that more of this was spent on health costs than on education, because the study reports that the second major item of spending after food and groceries was healthcare and devotes some discussion to what the health expenditures were on, whereas no mention was made of education spending (Devereux, Mvula, and Solomon 2006, 29–30). The Zambian SCTS study did not capture spending of the transfer specifi- cally but rather looked at the breakdown of overall consumption at baseline


3Spending on education was also positively associated with more educated and with younger household heads, and with urban households.


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