Resource inflows and household composition: evidence from South African panel data

Economic analysis of household behaviour, usually, assumes that household size and composition are fixed and exogenous. This study departs from this practice by analysing resource and household compositional variables, using an interdependent framework that treats them as jointly endogenous. The study is conducted using panel data set of Black households residing in Kwazulu Natal province in South Africa. The results provide evidence of fluidity of household structure, and point to new hypotheses on the effects of household resources on household composition.