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The Effect Of The South African Old Age Pension On Labour Supply Of The Elderly

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  • Vimal Ranchhod

Abstract

In this paper, we estimate the effect of the means tested South African Old Age Pension on labour supply amongst the elderly African subpopulation in South Africa. We find significant decreases in employment rates and labour supply. Those who remain employed beyond the pensionable age are more likely to work in jobs with flexible hours of work, and work even fewer hours than people in similar jobs who are not pension age-eligible. Our results suggest that governments do need to consider the labour supply related incentives provided via its various welfare programmes. Copyright (c) 2006 The Author. Journal compilation (c) 2006 Economic Society of South Africa.

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Bibliographic Info

Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 74 (2006)
Issue (Month): 4 (December)
Pages: 725-744

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Handle: RePEc:bla:sajeco:v:74:y:2006:i:4:p:725-744

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Cited by:
  1. Ha Trong Nguyen & Amy Y.C. Liu & Alison L. Booth, 2012. "Monetary transfers from children and the labour supply of elderly parents: evidence from Vietnam," CEPR Discussion Papers 664, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Dora L. Costa, 2008. "The Rise of Retirement Among African Americans: Wealth and Social Security Effects," NBER Working Papers 14462, National Bureau of Economic Research, Inc.
  3. Alexis Sienaert, 2008. "The Labour Supply Effects of the South African State Old Age Pension: Theory, Evidence and Implications," SALDRU Working Papers 20, Southern Africa Labour and Development Research Unit, University of Cape Town.

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