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

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Author(s)
Bertrand, Marianne
Miller, Douglas
Mullainathan, Sendhil
Keywords
FAMILY COMPOSITION
GENDERS
WAGE EMPLOYMENT
BARGAINING POWER
SELF-EMPLOYMENT
AGE GROUP
LABOR MARKETS
WORKERS
UNEMPLOYMENT
PENSION AGE
YOUNG CHILD
PENSION BENEFIT
LOW EMPLOYMENT
PENSION PROGRAM
BARGAINING
PENSION BENEFITS
EMPLOYMENT EFFECTS
HEALTH PROBLEMS
SOCIAL SECURITY SYSTEM
POLITICAL ECONOMY
PRIME AGE
EXTENDED FAMILIES
RESOURCE FLOWS
FAMILY INCOME
HOUSEHOLD INCOME
URBAN AREAS
REGULAR EMPLOYMENT
NUMBER OF PEOPLE
WORKING HOURS
DISCRIMINATION
OLD AGE
LABOR FORCE
SOCIAL PENSION
WILL
SOCIAL SECURITY
DEVELOPING COUNTRIES
OLD MEN
UNEMPLOYED
POLICY RESEARCH
FEMALE LABOR
OLDER RELATIVES
SOCIAL POLICIES
FAMILY LABOR
ELDERLY WOMEN
ELDERLY MEN
LABOR SUPPLY
LIVING STANDARDS
SOCIAL PROGRAMS
RESOURCE ALLOCATION
OLD-AGE PENSION
LABOR MARKET
PENSION
EARNING
GENDER
LOCAL AUTHORITIES
PERMANENT INJURY
BENEFIT LEVELS
PRIMARY CONCERN
HUSBAND
LABOR FORCE PARTICIPATION
FEMALE CHILDREN
UNEMPLOYMENT RATES
MARKET WAGES
PRIVATE PENSION
EMPLOYMENT RATE
ELDERLY POPULATION
AGE GROUPS
SOCIAL BENEFITS
HOME
ECONOMICS
SEX
PUBLIC POLICY
NUMBER OF WOMEN
EQUALITY
WIFE
INCOME
FAMILY MEMBERS
JOBS
MIGRATION
ELDERLY PERSONS
POPULATION CENSUS
PENSION INCOME
PROGRAM DESIGN
ALLOCATION OF RESOURCES
ELDERLY PEOPLE
FEMALE
FEMALE EMPLOYMENT
PENSIONS
AGE CATEGORIES
YOUNG CHILDREN
RESPECT
PENSIONER
PRIVATE TRANSFERS
EXTENDED FAMILY
OLD-AGE
EMPLOYMENT STATUS
REMITTANCE
ACCOUNTING
MARKET WAGE
LIVING CONDITIONS
WOMAN
HUMAN CAPITAL
PENSION TRANSFER
FAMILY SIZE
EDUCATIONAL ATTAINMENT
HOUSEHOLD LEVEL
DISABILITY
FUTURE INCOME
PENSION BENEFICIARIES
RESOURCE ALLOCATIONS
ELDERLY
HOUSEHOLD SIZE
PENSION TRANSFERS
PENSIONERS
CHILD HEALTH
HOUSEHOLD SURVEY
LIFE EXPECTANCY
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URI
http://hdl.handle.net/20.500.12424/513693
Online Access
http://hdl.handle.net/10986/17171
Abstract
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.
Date
2014-02-26
Type
Journal Article
Identifier
oai:openknowledge.worldbank.org:10986/17171
World Bank Economic Review
http://hdl.handle.net/10986/17171
Copyright/License
CC BY-NC-ND 3.0 IGO
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