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Labour force withdrawal of the elderly in South Africa

  • David Lam

    ()

    (Economics Department, University of Michigan)

  • Murray Leibbrandt

    ()

    (SALDRU, School of Economics, University of Cape Town)

  • Vimal Ranchhod

    ()

    (School of Economics, University of Cape Town)

This paper analyses labour market behaviour of the elderly in South Africa, focusing on the Black/African population group. The analysis uses data from the 2001 census and 1996 census, the Labour Force Surveys for September 2000 and 2001, and the Income and Expenditure Survey for 2000. Findings show that participation rates fall fairly rapidly after age 45, with particularly sharp declines in both participation and work at the age of eligibility for the old-age pension. Measures of unused productive capacity demonstrate that South Africa's age profile of labour force withdrawal compares favourably with some OECD countries. The hazard rate indicates that the age of pension eligibility is associated with increased rates of retirement. The paper also examines major determinants of elderly labour supply, including household structure and marital status, public and private pensions and schooling and, finally, calculates probit regressions to gain a clearer picture of the variables affecting the work activity of the elderly.

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Paper provided by Southern Africa Labour and Development Research Unit, University of Cape Town in its series SALDRU/CSSR Working Papers with number 118.

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Date of creation: 2005
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Handle: RePEc:ldr:cssrwp:118
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  1. Arie Kapteyn & Klaas de Vos, 1997. "Social Security and Retirement in The Netherlands," NBER Working Papers 6135, National Bureau of Economic Research, Inc.
  2. Valerie M�ller & Richard Devey, 2003. "Trends in living conditions and satisfaction among poorer older South Africans: objective and subjective indicators of quality of life in the October Household Survey," Development Southern Africa, Taylor & Francis Journals, vol. 20(4), pages 457-476.
  3. Peracchi, Franco & Welch, Finis, 1994. "Trends in Labor Force Transitions of Older Men and Women," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 210-42, April.
  4. Marianne Bertrand & Douglas Miller & Sendhil Mullainathan, 1999. "Public Policy and Extended Families: Evidence from South Africa," Working Papers 801, Princeton University, Department of Economics, Industrial Relations Section..
  5. Johannes Fedderke & Chandana Kularatne & Martine Mariotti, 2007. "Mark-up Pricing in South African Industry," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 28-69, January.
  6. Lawrence Schlemmer & Valerie Møller, 1997. "The Shape of South African Society and its Challenges," Social Indicators Research, Springer, vol. 41(1), pages 15-50, July.
  7. Murray Leibbrandt & Haroon Bhorat, 1999. "Modelling Vulnerability and Low Earnings in the South African Labour Market," Working Papers 99032, University of Cape Town, Development Policy Research Unit.
  8. Case, A. & Deaton, A., 1996. "Large Cash Transfers to the Elderly in South Africa," Papers 176, Princeton, Woodrow Wilson School - Development Studies.
  9. Clark, Robert L & Anker, Richard, 1993. "Cross-national Analysis of Labor Force Participation of Older Men and Women," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 489-512, April.
  10. Martin Wittenberg, 2005. "The school day in South Africa," SALDRU/CSSR Working Papers 113, Southern Africa Labour and Development Research Unit, University of Cape Town.
  11. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
  12. Marianne Bertrand & Sendhil Mullainathan & Douglas Miller, 2003. "Public Policy and Extended Families: Evidence from Pensions in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 27-50, June.
  13. Cecil Mlatsheni & Murray Leibbrandt, 2001. "The role of education and fertility in the participation and employment of African women in South Africa," Working Papers 01054, University of Cape Town, Development Policy Research Unit.
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