Social Security and Labour Supply in Ethiopia

Don Melaku

Ethiopian Journal of Economics, 2001, vol. 07, issue 01, 119

Abstract: This paper examines the effect of social security on labor supply using the traditional labor force participation model. Application of a log it regression to the survey data yields results that go counter to theory. That is, the availability of pension income does not reduce labor force participation rates. It is also found, that as age increases, participation in the labor force is significantly reduced for women than men and also for blue-collar jobs that white-collar ones. This result has a policy implication that there is a need for retirement age discrimination act by sex and by type of job. Logit models were estimated for different age groups and it is found that there is no problem arising due to aging or health, which is the mai determinants in setting retirement age, until the age of 60 for participation in the labor force. The results also indicate that the probability to participate in the labor force reduces by 0.09 if one goes from age group of 56-60 to the age group of 61-65.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/250252/files/M ... %20in%20Ethiopia.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:eeaeje:250252

DOI: 10.22004/ag.econ.250252

Access Statistics for this article

More articles in Ethiopian Journal of Economics from Ethiopian Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().