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

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  • Vimal Ranchhod

Abstract

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.

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  • Vimal Ranchhod, 2006. "The Effect Of The South African Old Age Pension On Labour Supply Of The Elderly," South African Journal of Economics, Economic Society of South Africa, vol. 74(4), pages 725-744, December.
    • Handle: RePEc:bla:sajeco:v:74:y:2006:i:4:p:725-744
    DOI: 10.1111/j.1813-6982.2006.00098.x
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    References listed on IDEAS

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    1. David Lam & Murray Leibbrandt & Vimal Ranchhod, 2005. "Labour force withdrawal of the elderly in South Africa," SALDRU/CSSR Working Papers 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
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