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

Labor supply responses to large social transfers: Longitudinal evidence from South Africa
Labor supply responses to large social transfers: Longitudinal evidence from South Africa
We quantify the labor supply responses of prime-aged adults to the presence of pensioners in their households, using longitudinal data collected in South Africa. We compare households and individuals before and after pension receipt and pension loss, which allows us to control for a host of unobservable household and individual characteristics that may determine labor market behavior. We find large cash transfers to the elderly lead to increased employment among prime-aged adults, which occurs primarily through labor migration. The pension's impact is attributable to the increase in household resources it represents, which can be used to stake migrants until they become self-sufficient, and to the presence of pensioners who can care for small children, which allows prime-aged adults to look for work elsewhere.
1945-7782
22-48
Ardington, Cally
ac098848-351b-444b-9b0d-906d9a64cf62
Case, Anne
64920b89-418c-4f83-8ba6-d204617c2ca2
Hosegood, Victoria
c59a89d5-5edc-42dd-b282-f44458fd2993
Ardington, Cally
ac098848-351b-444b-9b0d-906d9a64cf62
Case, Anne
64920b89-418c-4f83-8ba6-d204617c2ca2
Hosegood, Victoria
c59a89d5-5edc-42dd-b282-f44458fd2993

Ardington, Cally, Case, Anne and Hosegood, Victoria (2009) Labor supply responses to large social transfers: Longitudinal evidence from South Africa. American Economic Journal: Applied Economics, 1 (1), 22-48. (doi:10.1257/app.1.1.22).

Record type: Article

Abstract

We quantify the labor supply responses of prime-aged adults to the presence of pensioners in their households, using longitudinal data collected in South Africa. We compare households and individuals before and after pension receipt and pension loss, which allows us to control for a host of unobservable household and individual characteristics that may determine labor market behavior. We find large cash transfers to the elderly lead to increased employment among prime-aged adults, which occurs primarily through labor migration. The pension's impact is attributable to the increase in household resources it represents, which can be used to stake migrants until they become self-sufficient, and to the presence of pensioners who can care for small children, which allows prime-aged adults to look for work elsewhere.

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More information

Published date: January 2009
Organisations: Social Sciences

Identifiers

Local EPrints ID: 181781
URI: https://eprints.soton.ac.uk/id/eprint/181781
ISSN: 1945-7782
PURE UUID: 440a53a0-ecc5-480e-8c86-de100297cf97
ORCID for Victoria Hosegood: ORCID iD orcid.org/0000-0002-2244-2518

Catalogue record

Date deposited: 19 Apr 2011 13:04
Last modified: 19 Nov 2019 01:40

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