Cash Transfers and Socioeconomic Behavior among Older Adults: Evidence from a Regression Discontinuity Design

Anh Tuyet Nguyen and Hiroyuki Yamada
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Anh Tuyet Nguyen: Independent Researcher

No DP2025-027, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: The rapid aging of populations has prompted the introduction of social pension programs aimed at preserving the welfare of the elderly. However, adverse socioeconomic behaviors may dampen the intended policy effects. Using a fuzzy regression discontinuity design, this study examines the impact of social pension receipt on expenditure patterns and material hardship among older adults aged 80 year or older in Vietnam. We find that social pension increases the risk of material hardship in rural areas and reduces non-food expenditures in urban areas. To explain these findings, we explore two potential pathways: economic behavioral mechanisms and social behavioral mechanisms. The results suggest that behavioral responses may offset the intended welfare benefits of social pensions, underscoring the need to account for such adjustments in the design of aging-related policies in developing countries.

Keywords: social pensions; expenditure; material hardship; socioeconomic behavior; the elderly (search for similar items in EconPapers)
JEL-codes: D10 H55 J14 O12 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2025-12-08
New Economics Papers: this item is included in nep-age and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:dp2025-027

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