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.
