Social Security and Labour Supply in Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Melaku Don


This paper examines the effect of social security on labor supply using the traditional labor force participation model. Application of a log it regression to the survey data yields results that go counter to theory. That is, the availability of pension income does not reduce labor force participation rates. It is also found, that as age increases, participation in the labor force is significantly reduced for women than men and also for blue-collar jobs that white-collar ones. This result has a policy implication that there is a need for retirement age discrimination act by sex and by type of job. Logit models were estimated for different age groups and it is found that there is no problem arising due to aging or health, which is the mai determinants in setting retirement age, until the age of 60 for participation in the labor force. The results also indicate that the probability to participate in the labor force reduces by 0.09 if one goes from age group of 56-60 to the age group of 61-65.

Corporate Author:Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Social security

Secondary Descriptor:Taxation

Geographic Descriptors:Ethiopia
Cataloge Date:03/02/2013
Broad Subject heading:Labor supply
Call Number:330.05 ETH JOU
Serial Key Title:Ethiopian Journal of Economics
Publication catagory:Ethiopian Journal of Economics
Content type:EEA Publication
Year:April, 1998
Publication date:1998-03-02 00:00:00
Forum or Discussion date:2013-03-02 00:00:00
PDF file: Melaku Don_Social Security and Labour Supply in Ethiopia.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Serial (Journal)
Current frequency:Semiannual
Author: Melaku Don