Does Money Protect Health Status? Evidence from South African Pensions
AbstractThe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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.
Date of creation: Aug 2001
Date of revision:
Contact details of provider:
Postal: 208 Fisher Hall, Princeton, NJ 08544
Phone: (609) 258 - 6403
Fax: (609) 258 - 5974
Web page: http://www.princeton.edu/%7Erpds/index.html
More information through EDIRC
Other versions of this item:
- Anne Case, 2004. "Does Money Protect Health Status? Evidence from South African Pensions," NBER Chapters, in: Perspectives on the Economics of Aging, pages 287-312 National Bureau of Economic Research, Inc.
- Anne Case, 2001. "Does Money Protect Health Status? Evidence from South African Pensions," NBER Working Papers 8495, National Bureau of Economic Research, Inc.
- Anne Case, 2001. "Does Money Protect Health Status? Evidence from South African Pensions," Working Papers 268, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
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.:
- James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
- Esther Duflo, 2003.
"Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa,"
World Bank Economic Review,
World Bank Group, vol. 17(1), pages 1-25, June.
- 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.
- Victor R. Fuchs, 1982.
"Time Preference and Health: An Exploratory Study,"
in: Economic Aspects of Health, pages 93-120
National Bureau of Economic Research, Inc.
- Case, Anne & Deaton, Angus, 1998.
"Large Cash Transfers to the Elderly in South Africa,"
Royal Economic Society, vol. 108(450), pages 1330-61, September.
- Case, A. & Deaton, A., 1996. "Large Cash Transfers to the Elderly in South Africa," Papers 176, Princeton, Woodrow Wilson School - Development Studies.
- Anne Case & Angus Deaton, 1996. "Large Cash Transfers to the Elderly in South Africa," NBER Working Papers 5572, National Bureau of Economic Research, Inc.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Long).
If references are entirely missing, you can add them using this form.