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The Labour Supply Effects of the South African State Old Age Pension: Theory, Evidence and Implications

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  • Alexis Sienaert

Abstract

This paper examines the impact of South Africa’s state old age pension on the labour supply of working age members of pension-receiving households. A range of identification strategies are employed in an attempt to make full use of recent labour force survey data. Results suggest fairly modest, negative impacts on participation and employment on average, but a pronounced, positive migration impact. As such, they marry the results of Bertrand, Mullainathan and Miller (2003) and Posel, Fairburn and Lund (2006), using more recent (and nationally-representative) data. Concluding sections consider implications, and question whether gender-differentiated effects are grounds for rejecting the income-pooling hypothesis.

Suggested Citation

  • Alexis Sienaert, 2008. "The Labour Supply Effects of the South African State Old Age Pension: Theory, Evidence and Implications," SALDRU Working Papers 20, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:20
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    Cited by:

    1. Barrientos, Armando & Nino-Zarazua, Miguel, 2010. "Social Assistance in Developing Countries Database Version 5.0," MPRA Paper 20001, University Library of Munich, Germany.
    2. Inés Berniell & Dolores de la Mata & Matilde Pinto Machado, 2020. "The Impact of a Permanent Income Shock on the Situation of Women in the Household: The Case of a Pension Reform in Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1295-1343.
    3. Ana P. Canedo, 2023. "The Unintended Effects of Social Pensions on Migration: Evidence from Rural Mexico," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(1), pages 1-25, February.
    4. Mahé, Clotilde, 2020. "Publicly provided healthcare and migration," Economics & Human Biology, Elsevier, vol. 39(C).
    5. Jennifer Waidler & Stephen Devereux, 2019. "Social grants, remittances, and food security: does the source of income matter?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(3), pages 679-702, June.
    6. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.

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    More about this item

    Keywords

    Labour Supply; Social Security and Public Pensions; Intrahousehold Allocation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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