Labour Force Withdrawal of the Elderly in South Africa

This paper provides a broad overview of the labor force activity of older workers in South Africa. We begin the paper with a discussion of important features of the social and economic environment that provide a background for the analysis. Drawing on excellent microdata, we then analyze the age profile of participation, focusing in particular on the possible effects of the old age pension on retirement. We look at several important variables that may affect the economic activity of the elderly, including marital status, living arrangements, the pension system, education, and geography. We estimate probit regressions in order to look at key determinants of labor force activity.