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Old‐Age Pensions and Female Labour Supply in India

Bibliographic Data

ID14899875
AuthorsVidhya Unnikrishnan (0000-0002-2990-5992, Lancaster University Leipzig Germany, corresponding author), Kunal Sen (0000-0001-5439-6619, United Nations University World Institute for Development Economics Research Helsinki Finland)
Year2025
Volume37
Issue6
Pages1337-1350
Publication date2025-08-01
Open AccessYes
TypeARTICLE
VenueJournal of International Development (JOURNAL)
Journal identifiersISSN: 0954-1748 • E-ISSN: 1099-1328
PublisherWiley (PUBLISHER • GB)
DOI10.1002/jid.70013
OpenAlexW4412648559
LanguageEN
References cited28

Whether cash transfers have unintended effects on the recipient household's labour supply is of considerable policy interest. We examine the impact of the Indira Gandhi National Old‐Age Pension Scheme (IGNOAPS) on prime‐age women's labour supply decisions in India, where female labour force participation continues to decline over time. We use propensity score matching (PSM) to make households with IGNOAPS recipients comparable with programme non‐recipients. Further, we use individual fixed effects (FE) to eliminate the effect of other time invariant unobservable characteristics on women's labour market behaviour. Our results from the PSM‐FE suggest that having a pensioner in the household increases the probability of working in paid employment by 3.87 percentage points for women aged 20–50. We have explored the income effect and childcare constraint as potential mechanisms

Demographic economics · Economics · Labour economics · Labour supply · Socioeconomics · Employment and Welfare Studies · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics

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