Social Security And Labour Supply In Ethiopia

This Paper attempts to see the effect of social security on laborrnsupply using traditional labor force participation modelrnapplication of a log it regression to the survey data yieldsrnresults that go counter to theory. the availability of Pensionrnincome does not reduce labor force participation rates. it is alsornFound. That as age increases, Participation in the labor force isrnsignificantly reduced for women than men and. Also for bluerncollar jobs than white collar ones. This result has a Policyrnimplication that there is a need for retirement agerndiscrimination act by sex and by type of job. Legit modelsrnwere ,Estimated for different age groups and it is found thatrnthere is no problem that arises due to aging or health, Which arernthe main determinants in setting a retirement age, Until age 60rnto participate in the labor Force it is also found that thernProbability to participate in the labor force reduces by 0.09 ifrnone goes from age group of 56-60 to the age group of 61-65.

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