Identfying Pure-Income Effects in an Empirical Model of Labour Supply: the case of the South African Social Pension
AbstractThis paper investigates the income effects of the South African Social Pension. Using data from three waves of the the Labour Force Survey, we find that there appears to be a significant negative association between labour supply and pension receipt. However, we find little evidence to support the view that these results can be interpreted as pure income effects. Rather, the evidence suggests that the association is driven by age-cohort effects, which we argue reflects the burden of living with the elderly. We also report preliminary evidence which is suggestive of endogenous household formation in response to eligibility for the social pension.
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Bibliographic InfoPaper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU Working Papers with number 19.
Length: 27 pages
Date of creation: Nov 2007
Date of revision:
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Web page: http://www.saldru.uct.ac.za/
More information through EDIRC
public transfers; pensions; labour supply;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
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"Large Cash Transfers to the Elderly in South Africa,"
Royal Economic Society, vol. 108(450), pages 1330-61, September.
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- Anne Case & Angus Deaton, 1996. "Large Cash Transfers to the Elderly in South Africa," NBER Working Papers 5572, National Bureau of Economic Research, Inc.
- Posel, Dorrit & Fairburn, James A. & Lund, Frances, 2006. "Labour migration and households: A reconsideration of the effects of the social pension on labour supply in South Africa," Economic Modelling, Elsevier, vol. 23(5), pages 836-853, September.
- Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
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