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

Alexis Sienaert ()

No 20, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town

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.

Keywords: Labour Supply; Social Security and Public Pensions; Intrahousehold Allocation (search for similar items in EconPapers)
JEL-codes: D13 H55 J13 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2008-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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