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

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...

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Main Authors: Bertrand, Marianne, Mullainathan, Sendhil, Miller, Douglas
Format: Journal Article
Language:English
en_US
Published: Washington, DC: World Bank 2014
Subjects:
SEX
Online Access:http://documents.worldbank.org/curated/en/2003/01/17741923/public-policy-extended-families-evidence-pensions-south-africa
http://hdl.handle.net/10986/17171
id okr-10986-17171
recordtype oai_dc
spelling okr-10986-171712021-04-23T14:03:29Z Public Policy and Extended Families : Evidence from Pensions in South Africa Bertrand, Marianne Mullainathan, Sendhil Miller, Douglas 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 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. 2014-02-26T15:32:46Z 2014-02-26T15:32:46Z 2003-01 Journal Article http://documents.worldbank.org/curated/en/2003/01/17741923/public-policy-extended-families-evidence-pensions-south-africa World Bank Economic Review http://hdl.handle.net/10986/17171 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Journal Article Publications & Research Africa South Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic 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
spellingShingle 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
Bertrand, Marianne
Mullainathan, Sendhil
Miller, Douglas
Public Policy and Extended Families : Evidence from Pensions in South Africa
geographic_facet Africa
South Africa
description 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.
format Journal Article
author Bertrand, Marianne
Mullainathan, Sendhil
Miller, Douglas
author_facet Bertrand, Marianne
Mullainathan, Sendhil
Miller, Douglas
author_sort Bertrand, Marianne
title Public Policy and Extended Families : Evidence from Pensions in South Africa
title_short Public Policy and Extended Families : Evidence from Pensions in South Africa
title_full Public Policy and Extended Families : Evidence from Pensions in South Africa
title_fullStr Public Policy and Extended Families : Evidence from Pensions in South Africa
title_full_unstemmed Public Policy and Extended Families : Evidence from Pensions in South Africa
title_sort public policy and extended families : evidence from pensions in south africa
publisher Washington, DC: World Bank
publishDate 2014
url http://documents.worldbank.org/curated/en/2003/01/17741923/public-policy-extended-families-evidence-pensions-south-africa
http://hdl.handle.net/10986/17171
_version_ 1764433207088906240