Final published version
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Old‐Age Pensions and Female Labour Supply in India
AU - Unnikrishnan, Vidhya
AU - Sen, Kunal
PY - 2025/7/23
Y1 - 2025/7/23
N2 - 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.
AB - 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.
KW - employment
KW - labour supply
KW - childcare
KW - income effect
KW - women
KW - pension
U2 - 10.1002/jid.70013
DO - 10.1002/jid.70013
M3 - Journal article
JO - Journal of International Development
JF - Journal of International Development
SN - 0954-1748
ER -