Public Policy and Extended Families : Evidence from Pensions in South Africa
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Washington, DC: World Bank
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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.
Palabras clave
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