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Labour force withdrawal of the elderly in South Africa

Author

Listed:
  • David Lam

    (Economics Department, University of Michigan)

  • Murray Leibbrandt

    (SALDRU, School of Economics, University of Cape Town)

  • Vimal Ranchhod

    (School of Economics, University of Cape Town)

Abstract
This paper analyses labour market behaviour of the elderly in South Africa, focusing on the Black/African population group. The analysis uses data from the 2001 census and 1996 census, the Labour Force Surveys for September 2000 and 2001, and the Income and Expenditure Survey for 2000. Findings show that participation rates fall fairly rapidly after age 45, with particularly sharp declines in both participation and work at the age of eligibility for the old-age pension. Measures of unused productive capacity demonstrate that South Africa's age profile of labour force withdrawal compares favourably with some OECD countries. The hazard rate indicates that the age of pension eligibility is associated with increased rates of retirement. The paper also examines major determinants of elderly labour supply, including household structure and marital status, public and private pensions and schooling and, finally, calculates probit regressions to gain a clearer picture of the variables affecting the work activity of the elderly.

Suggested Citation

  • David Lam & Murray Leibbrandt & Vimal Ranchhod, 2005. "Labour force withdrawal of the elderly in South Africa," SALDRU/CSSR Working Papers 118, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:cssrwp:118
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    File URL: https://www.opensaldru.uct.ac.za/handle/11090/664
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    References listed on IDEAS

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    Cited by:

    1. Barrientos, Armando, 2012. "Social Transfers and Growth: What Do We Know? What Do We Need to Find Out?," World Development, Elsevier, vol. 40(1), pages 11-20.
    2. Mitra, Sophie, 2010. "Disability Cash Transfers in the Context of Poverty and Unemployment: The Case of South Africa," World Development, Elsevier, vol. 38(12), pages 1692-1709, December.
    3. Bernardo Lanza Queiroz, 2007. "The determinants of male retirement in urban Brazil," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(1), pages 11-36, January-A.
    4. Joseph F Feulefack & Martin K Luckert & Sandeep Mohapatra & Sean B Cash & Arif Alibhai & Walter Kipp, 2013. "Impact of Community-Based HIV/AIDS Treatment on Household Incomes in Uganda," PLOS ONE, Public Library of Science, vol. 8(6), pages 1-7, June.
    5. Cally Ardington & Anne Case & Mahnaz Islam & David Lam & Murray Leibbrandt & Alicia Menendez & Analia Olgiati, 2009. "The impact of AIDS on intergenerational support in South Africa: Evidence from the Cape Area Panel Study," SALDRU Working Papers 27, Southern Africa Labour and Development Research Unit, University of Cape Town.
    6. Vimal Ranchhod, 2006. "The Effect Of The South African Old Age Pension On Labour Supply Of The Elderly," South African Journal of Economics, Economic Society of South Africa, vol. 74(4), pages 725-744, December.
    7. Sarah Baird & David McKenzie & Berk Özler, 2018. "The effects of cash transfers on adult labor market outcomes," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-20, December.
    8. Bernardo Lanza Queiroz & Moema Gonçalves Bueno Figoli, 2011. "Population aging and the rising costs of public pension in Brazil," Textos para Discussão Cedeplar-UFMG td438, Cedeplar, Universidade Federal de Minas Gerais.
    9. Alexis Sienaert, 2008. "The Labour Supply Effects of the South African State Old Age Pension: Theory, Evidence and Implications," SALDRU Working Papers 20, Southern Africa Labour and Development Research Unit, University of Cape Town.

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