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Labour force withdrawal of the elderly in South Africa

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Author Info

  • David Lam

    ()
    (Economics Department, University of Michigan)

  • Murray Leibbrandt

    ()
    (SALDRU, School of Economics, University of Cape Town)

  • Vimal Ranchhod

    ()
    (School of Economics, University of Cape Town)

Abstract

This paper analyses labour market behaviour of the elderly in South Africa, focusing on the Black/African population group. The analysis uses data from the 2001 census and 1996 census, the Labour Force Surveys for September 2000 and 2001, and the Income and Expenditure Survey for 2000. Findings show that participation rates fall fairly rapidly after age 45, with particularly sharp declines in both participation and work at the age of eligibility for the old-age pension. Measures of unused productive capacity demonstrate that South Africa's age profile of labour force withdrawal compares favourably with some OECD countries. The hazard rate indicates that the age of pension eligibility is associated with increased rates of retirement. The paper also examines major determinants of elderly labour supply, including household structure and marital status, public and private pensions and schooling and, finally, calculates probit regressions to gain a clearer picture of the variables affecting the work activity of the elderly.

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Bibliographic Info

Paper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU/CSSR Working Papers with number 118.

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Date of creation: 2005
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Handle: RePEc:ldr:cssrwp:118

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  1. Anne Case & Angus Deaton, 1996. "Large Cash Transfers to the Elderly in South Africa," NBER Working Papers 5572, National Bureau of Economic Research, Inc.
  2. Murray Leibbrandt & Haroon Bhorat, 1999. "Modelling Vulnerability and Low Earnings in the South African Labour Market," Working Papers 99032, University of Cape Town, Development Policy Research Unit.
  3. Cecil Mlatsheni & Murray Leibbrandt, 2001. "The role of education and fertility in the participation and employment of African women in South Africa," Working Papers 01054, University of Cape Town, Development Policy Research Unit.
  4. Johannes Fedderke & Chandana Kularatne & Martine Mariotti, 2005. "Mark-up Pricing in South African Industry," Working Papers 01, Economic Research Southern Africa.
  5. Clark, Robert L & Anker, Richard, 1993. "Cross-national Analysis of Labor Force Participation of Older Men and Women," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 489-512, April.
  6. Marianne Bertrand & Douglas Miller & Sendhil Mullainathan, 2000. "Public Policy and Extended Families: Evidence from South Africa," NBER Working Papers 7594, National Bureau of Economic Research, Inc.
  7. Martin Wittenberg, 2005. "The school day in South Africa," SALDRU/CSSR Working Papers 113, Southern Africa Labour and Development Research Unit, University of Cape Town.
  8. Arie Kapteyn & Klaas de Vos, 1997. "Social Security and Retirement in The Netherlands," NBER Working Papers 6135, National Bureau of Economic Research, Inc.
  9. Lawrence Schlemmer & Valerie Møller, 1997. "The Shape of South African Society and its Challenges," Social Indicators Research, Springer, vol. 41(1), pages 15-50, July.
  10. Peracchi, Franco & Welch, Finis, 1994. "Trends in Labor Force Transitions of Older Men and Women," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 210-42, April.
  11. Valerie M�ller & Richard Devey, 2003. "Trends in living conditions and satisfaction among poorer older South Africans: objective and subjective indicators of quality of life in the October Household Survey," Development Southern Africa, Taylor & Francis Journals, vol. 20(4), pages 457-476.
  12. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
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Cited by:
  1. 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.
  2. Cally Ardington & Anne Case & Mahnaz Islam & David Lam & Murray Leibbrandt & Alicia Menendez & Analia Olgiati, 2009. "The impact of AIDS on intergenerational support in South Africa: Evidence from the Cape Area Panel Study," SALDRU Working Papers 27, Southern Africa Labour and Development Research Unit, University of Cape Town.
  3. Sophie Mitra, 2009. "Disability Cash Transfers in the Context of Poverty and Unemployment: the Case of South Africa," Fordham Economics Discussion Paper Series dp2009-08, Fordham University, Department of Economics.
  4. Bernardo Lanza Queiroz & Moema Gonçalves Bueno Figoli, 2011. "Population aging and the rising costs of public pension in Brazil," Textos para Discussão Cedeplar-UFMG td438, Cedeplar, Universidade Federal de Minas Gerais.
  5. Bernardo Lanza Queiroz, 2007. "The determinants of male retirement in urban Brazil," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(1), pages 11-36, January-A.

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