Labor supply responses to large social transfers: Longitudinal evidence from South Africa

Cally Ardington, Anne Case and Victoria Hosegood

No 17, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town

Abstract: In many parts of the developing world, rural areas exhibit high rates of unemployment and underemployment. Understanding what prevents people living in rural areas from migrating to find better jobs is central to the development process. This issue is especially salient in South Africa, where differences in earnings and employment rates between rural and urban areas are large and persistent (Chamberlain and van der Berg 2002; Leite et al. 2006; Banerjee et al. 2007). In this paper, we examine whether binding credit constraints and childcare constraints limit the ability of households to send labor migrants, and whether the arrival of a large, stable source of income-here, the South African old-age pension-helps households to overcome these constraints.

Pages: 43 pages
Date: 2007-12
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Citations: View citations in EconPapers (21)

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https://opensaldru.uct.ac.za/bitstream/handle/11090/37/2008_17.pdf?sequence=1 (application/pdf)

Related works:
Journal Article: Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa (2009)
Working Paper: Labor supply responses to large social transfers: Longitudinal evidence from South Africa (2008)
Working Paper: Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa (2007)
Working Paper: LABOR SUPPLY RESPONSES TO LARGE SOCIAL TRANSFERS: LONGITUDINAL EVIDENCE FROM SOUTH AFRICA (2007)
Working Paper: Labor supply responses to large social transfers: Longitudinal evidence from South Africa (2007)
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