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Does Money Protect Health Status? Evidence from South African Pensions

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Author Info
Anne Case (Princeton University and the NBER)

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Abstract

The channels by which better health leads to higher income, and those by which higher income protects health status, are of interest to both researchers and policy makers. In general, quantifying the impact of income on health is difficult, given the simultaneous determination of health and income. In this paper, we quantify the impact on health status of a large, exogenous increase in income—that associated with the South African state old age pension. Elderly Black and Coloured men and women who did not anticipate receiving large pensions in their lifetimes, and who did not pay into a pension system, are currently receiving more than twice median Black income per capita. These elderly men and women generally live in large households, and this paper documents the effect of the pension on the pensioners, on other adult members of their households, and on the children who live with them. We find, in households that pool income, that the pension protects the health of all household members, working in part to protect the nutritional status of household members, in part to improve living conditions, and in part to reduce the stress under which the adult household members negotiate day to day life. The health effects of delivering cash provide a benchmark against which other health-related interventions can be evaluated.

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Paper provided by Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies. in its series Working Papers with number 205.

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Date of creation: Aug 2001
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Handle: RePEc:pri:rpdevs:205

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  1. Esther Duflo, 2000. "Grandmothers and Granddaughters: Old Age Pension and Intra-household Allocation in South Africa," NBER Working Papers 8061, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-61, September. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Paul Frijters & John P. Haisken-DeNew & Michael Shields, 2003. "Estimating The Causal Effect of Income on Health: Evidence from Post Reunification East Germany," CEPR Discussion Papers 465, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  2. Yuyu Chen & Hongbin Li, 2006. "Mother's Education and Child Health: Is There a Nurturing Effect?," Discussion Papers 00021, Chinese University of Hong Kong, Department of Economics. [Downloadable!]
    Other versions:
  3. Denis Cogneau & Rémi Jedwab, 2008. "Family income and child outcomes: the 1990 cocoa price shock in Cote d’Ivoire," Working Papers DT/2008/05, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  4. Eric Edmonds & Kristin Mammen & Douglas L. Miller, 2004. "Rearranging the Family? Income Support and Elderly Living Arrangements in a Low Income Country," NBER Working Papers 10306, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Stephen E. Snyder & William N. Evans, 2002. "The Impact of Income on Mortality: Evidence from the Social Security Notch," NBER Working Papers 9197, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Andreea Balan-Cohen, 2008. "Healthy, Wealthy, and Wise? The Impact of the Old Age Assistance Program on Elderly Mortality in the United States," Discussion Papers Series, Department of Economics, Tufts University 0719, Department of Economics, Tufts University. [Downloadable!]
  7. Anne Case & Angela Fertig & Christina Paxson, 2003. "From Cradle to Grave? The Lasting Impact of Childhood Health and Circumstance," NBER Working Papers 9788, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Beomsoo Kim & Christopher J. Ruhm, 2009. "Inheritances, Health and Death," NBER Working Papers 15364, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Anne Case & Alicia Menendez & Cally Ardington, 2005. "Health Seeking Behavior in Northern KwaZulu-Natal," Working Papers 0504, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
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  10. Logan McLeod & Michael R. Veall, 2002. "The Dynamics of Food Deprivation and Overall Health: Evidence from the Canadian National Population Health Survey," Social and Economic Dimensions of an Aging Population Research Papers 86, McMaster University. [Downloadable!]
    Other versions:
  11. Denis Cogneau & Remi Jedwab, 2008. "Family Income and Child Outcomes:The 1990 Cocoa Price Shock in Cote d'Ivoire," CEDI Discussion Paper Series 08-13, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
  12. R. Todd Jewel & Patricia Triunfo & Máximo Rossi, 2005. "El estado de salud de los jóvenes uruguayos," Documentos de Trabajo (working papers) 1305, Department of Economics - dECON. [Downloadable!]
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  13. Lindahl, Mikael, 2002. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as Exogenous Source of Variation in Income," IZA Discussion Papers 442, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Máximo Rossi & Patricia Triunfo, 2004. "El Estado de Salud del Adulto Mayor en Uruguay," Documentos de Trabajo (working papers) 1404, Department of Economics - dECON. [Downloadable!]
    Other versions:
  15. Logan McLeod & Michael Veall, 2006. "The dynamics of food insecurity and overall health: evidence from the Canadian National Population Health Survey," Applied Economics, Taylor and Francis Journals, vol. 38(18), pages 2131-2146, October. [Downloadable!] (restricted)
  16. Paxson, Christina & Schady, Norbert, 2004. "Child health and the 1988-92 economic crisis in Peru," Policy Research Working Paper Series 3260, The World Bank. [Downloadable!]
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