The Disincentive E¤ects of Disability Grant on Labour Supply in South Africa: A Cohort Analysis
نویسنده
چکیده
We evaluate the treatment e¤ect of disability grant program using matching methods. A variety of propensity score matching methods applied, show that, on average, the disability grant program has large and signi cant e¤ects on lowering labour force participation rates of grant recipients. In particular the General Household Survey data we use show that labour force participation rates of Disability Grant bene ciaries would have been at most 24% higher had none received the bene ts. However, because selection into the disability grant program is not random, severity of disabilty may introduce selection bias. To that e¤ect our results are only an upper bound of the di¤erence between labour force participation rates of grant recipients and non recipients. Jel-Classi cation: H53, J21, J64, J22, J68
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