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THE EFFECT OF THE SOUTH AFRICAN OLD AGE PENSION ON LABOUR SUPPLY OF THE ELDERLY
Author(s) -
Ranchhod Vimal
Publication year - 2006
Publication title -
south african journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.502
H-Index - 31
eISSN - 1813-6982
pISSN - 0038-2280
DOI - 10.1111/j.1813-6982.2006.00098.x
Subject(s) - pension , labour supply , incentive , welfare , work (physics) , labour economics , economics , pension system , demographic economics , retirement age , working hours , work hours , market economy , finance , mechanical engineering , engineering
In this paper, we estimate the effect of the means tested South African Old Age Pension on labour supply amongst the elderly African subpopulation in South Africa. We find significant decreases in employment rates and labour supply. Those who remain employed beyond the pensionable age are more likely to work in jobs with flexible hours of work, and work even fewer hours than people in similar jobs who are not pension age‐eligible. Our results suggest that governments do need to consider the labour supply related incentives provided via its various welfare programmes.