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Public Policy and Extended Families : Evidence from Pensions in South Africa

ACCOUNTING AGE CATEGORIES AGE GROUP AGE GROUPS ALLOCATION OF RESOURCES BARGAINING BARGAINING POWER BENEFIT LEVELS CHILD HEALTH DEVELOPING COUNTRIES DISABILITY DISCRIMINATION EARNING ECONOMICS EDUCATIONAL ATTAINMENT ELDERLY ELDERLY MEN ELDERLY PEOPLE ELDERLY PERSONS ELDERLY POPULATION ELDERLY WOMEN EMPLOYMENT EFFECTS EMPLOYMENT RATE EMPLOYMENT STATUS EQUALITY EXTENDED FAMILIES EXTENDED FAMILY FAMILY COMPOSITION FAMILY INCOME FAMILY LABOR FAMILY MEMBERS FAMILY SIZE FEMALE FEMALE CHILDREN FEMALE EMPLOYMENT FEMALE LABOR FUTURE INCOME GENDER GENDERS HEALTH PROBLEMS HOME HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HUMAN CAPITAL HUSBAND INCOME JOBS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKETS LABOR SUPPLY LIFE EXPECTANCY LIVING CONDITIONS LIVING STANDARDS LOCAL AUTHORITIES LOW EMPLOYMENT MARKET WAGE MARKET WAGES MIGRATION NUMBER OF PEOPLE NUMBER OF WOMEN OLD AGE OLD MEN OLD-AGE OLD-AGE PENSION OLDER RELATIVES PENSION PENSION AGE PENSION BENEFICIARIES PENSION BENEFIT PENSION BENEFITS PENSION INCOME PENSION PROGRAM PENSION TRANSFER PENSION TRANSFERS PENSIONER PENSIONERS PENSIONS PERMANENT INJURY POLICY RESEARCH POLITICAL ECONOMY POPULATION CENSUS PRIMARY CONCERN PRIME AGE PRIVATE PENSION PRIVATE TRANSFERS PROGRAM DESIGN PUBLIC POLICY REGULAR EMPLOYMENT REMITTANCE RESOURCE ALLOCATION RESOURCE ALLOCATIONS RESOURCE FLOWS RESPECT SELF-EMPLOYMENT SEX SOCIAL BENEFITS SOCIAL PENSION SOCIAL POLICIES SOCIAL PROGRAMS SOCIAL SECURITY SOCIAL SECURITY SYSTEM UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATES URBAN AREAS WAGE EMPLOYMENT WIFE WILL WOMAN WORKERS WORKING HOURS YOUNG CHILD YOUNG CHILDREN
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Washington, DC: World Bank
Africa | South Africa
2014-02-26T15:32:46Z | 2014-02-26T15:32:46Z | 2003-01

How are resources allocated within extended families in developing economies? This question is investigated using a unique social experiment: the South African pension program. Under that program the elderly receive a cash transfer equal to roughly twice the per capita income of Africans in South Africa. The study examines how this transfer affects the labor supply of prime-age individuals living with these elderly in extended families. It finds a sharp drop in the working hours of prime-age individuals in these households when women turn 60 years old or men turn 65, the ages at which they become eligible for pensions. It also finds that the drop in labor supply is much larger when the pensioner is a woman, suggesting an imperfect pooling of resources. The allocation of resources among prime-age individuals depends strongly on their absolute age and gender as well as on their relative age. The oldest son in the household reduces his working hours more than any other prime-age household member.

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