Transfers and Labor Market Behavior of the Elderly in Developing Countries: Theory and Evidence from Vietnam

Chung Tran

No 2008-018, CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington

Abstract: In this paper, I analyze the crowding-out effects of public transfers on labor supply of the elderly in the context of developing countries. I argue that the interactions between private transfers received and labor supplied by the elderly affect the opportunity cost of retirement and, therefore, magnify the crowding-out effects of public transfers on the labor supply of the elderly. Using household survey data from Vietnam, I find the evidence supporting this hypothesis. That is, the crowding-out effect is about two times larger when accounting for the endogeneity of private transfers, which is caused by the interactions of private transfers and the labor supply.

Keywords: Altruism; Crowding-out; Social Security; Retirement, Transfers (search for similar items in EconPapers)
JEL-codes: H31 H55 I38 J14 J22 J28 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2008-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Transfers and Labor Market Behavior of the Elderly in Developing Countries: Theory and Evidence from Vietnam (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:inu:caeprp:2008018

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