Household responses to adverse income shocks: Pensioner out-migration and mortality in South Africa
AbstractHow do poor households respond to the cessation of cash transfers in developing countries? South Africa's generous social pension system results in most of the poor elderly being the primary 'breadwinner' in the household. I estimate the magnitude of the changes in household composition and labour force activity amongst the resident members of the household, that correlate with a pensioner leaving the household. I use nationally representative matched panel data from several waves of the South African Labour Force Surveys. Compositional changes include the out-migration of school-aged children, and in-migration of middle aged females and older adults of either gender. More than 1 in 4 losing households get an additional older adult. For people who maintain their residency status across waves, I nd large and statistically signi cant increases in employment rates for middle aged females and males (9.3 and 8.1 percentage points in each case), as well as for older adult females and males (10.3 percentage points in each case). For middle aged adults, this is not accompanied by a corresponding increase in labour supply.
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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 35.
Date of creation: Jul 2009
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Other versions of this item:
- Vimal Ranchhod, 2009. "Household responses to adverse income shocks: Pensioner out-migration and mortality in South Africa," Working Papers 133, Economic Research Southern Africa.
- NEP-AFR-2010-02-27 (Africa)
- NEP-AGE-2010-02-27 (Economics of Ageing)
- NEP-ALL-2010-02-27 (All new papers)
- NEP-DEV-2010-02-27 (Development)
- NEP-LAB-2010-02-27 (Labour Economics)
- NEP-MIG-2010-02-27 (Economics of Human Migration)
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