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State pension and labour market dynamics in South Africa
State pensions in South Africa are characterised by their generosity. The current level is approximately double the median per capita income of Africans in 1993. It is possible that pension receipt in a household could have a strong effect on labour market outcomes. This paper investigates the effec...
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| Format: | Thesis |
| Language: | English |
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School of Economics
2023
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| _version_ | 1867613185108869120 |
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| access_status_str | Open Access |
| author | Geel, Katherine |
| author_browse | Geel, Katherine |
| author_facet | Geel, Katherine |
| author_sort | Geel, Katherine |
| collection | Thesis |
| description | State pensions in South Africa are characterised by their generosity. The current level is approximately double the median per capita income of Africans in 1993. It is possible that pension receipt in a household could have a strong effect on labour market outcomes. This paper investigates the effects of access to pension income on labour supply and employment probability, The large negative elasticity of labour supply to pension income found in Bertrand, Mullainathan and Miller (2003) is much reduced, although the employment probability elasticity has increased in size. Eligible households are characterised by larger household size, higher unemployment levels, lower numbers of prime age workers present in the household, and on average younger members. These patterns tie in with our hypothesis that pension income is used to fund migration and job search, and thus a true picture of the effect of pension payments on labour supply must take this into account, We also investigate the effect of membership of a social network on employment probability. We find that network membership enables individuals to overcome the negative effect of pension income on employment probability. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/38285 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:07.214Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | School of Economics |
| publisherStr | School of Economics |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/38285 State pension and labour market dynamics in South Africa Geel, Katherine economics State pensions in South Africa are characterised by their generosity. The current level is approximately double the median per capita income of Africans in 1993. It is possible that pension receipt in a household could have a strong effect on labour market outcomes. This paper investigates the effects of access to pension income on labour supply and employment probability, The large negative elasticity of labour supply to pension income found in Bertrand, Mullainathan and Miller (2003) is much reduced, although the employment probability elasticity has increased in size. Eligible households are characterised by larger household size, higher unemployment levels, lower numbers of prime age workers present in the household, and on average younger members. These patterns tie in with our hypothesis that pension income is used to fund migration and job search, and thus a true picture of the effect of pension payments on labour supply must take this into account, We also investigate the effect of membership of a social network on employment probability. We find that network membership enables individuals to overcome the negative effect of pension income on employment probability. 2023-08-24T13:41:17Z 2023-08-24T13:41:17Z 2006 2023-08-24T13:40:55Z Master Thesis Masters MCom http://hdl.handle.net/11427/38285 eng application/pdf School of Economics Faculty of Commerce |
| spellingShingle | economics Geel, Katherine State pension and labour market dynamics in South Africa |
| thesis_degree_str | Master's |
| title | State pension and labour market dynamics in South Africa |
| title_full | State pension and labour market dynamics in South Africa |
| title_fullStr | State pension and labour market dynamics in South Africa |
| title_full_unstemmed | State pension and labour market dynamics in South Africa |
| title_short | State pension and labour market dynamics in South Africa |
| title_sort | state pension and labour market dynamics in south africa |
| topic | economics |
| url | http://hdl.handle.net/11427/38285 |
| work_keys_str_mv | AT geelkatherine statepensionandlabourmarketdynamicsinsouthafrica |