Description

Abstract: This study investigates possible causes of poverty afflicting a community of land reform beneficiaries in the Midlands of KwaZulu-Natal. The 38 beneficiary households had previously been clustered into four groups displaying different symptoms of poverty. Linear Discriminant Analysis was used first to distinguish households that were relatively income and asset “rich” from those that were relatively income and asset “poor”, and second to distinguish households that were relatively income poor but “asset rich” from those relatively asset poor but “income rich”. In the first analysis it was found that “rich” households could be distinguished from “poor” households using just two indicator variables; gender of the household head and family size. Larger, female-headed households have lower income and wealth per adult equivalent. In the second analysis, it was found that the “asset rich” had more human capital whereas the “income rich” owned vehicles and had fewer dependants per worker. Policy recommendations therefore point to education and vocational training