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The Effect Of The South African Old Age Pension On Labour Supply Of The Elderly

  • Vimal Ranchhod

In this paper, we estimate the effect of the means tested South African Old Age Pension on labour supply amongst the elderly African subpopulation in South Africa. We find significant decreases in employment rates and labour supply. Those who remain employed beyond the pensionable age are more likely to work in jobs with flexible hours of work, and work even fewer hours than people in similar jobs who are not pension age-eligible. Our results suggest that governments do need to consider the labour supply related incentives provided via its various welfare programmes. Copyright (c) 2006 The Author. Journal compilation (c) 2006 Economic Society of South Africa.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2006.00098.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 74 (2006)
Issue (Month): 4 (December)
Pages: 725-744

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Handle: RePEc:bla:sajeco:v:74:y:2006:i:4:p:725-744
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