What is the Impact of Non-Contributory Pensions on Poverty? Estimates from Brazil and South Africa

Abstract

This paper considers the impact of cash transfer programmes for the old in Brazil and South Africa on poverty among households with older people. Using datasets collected specifically for the purpose, the paper constructs conditional and unconditional estimates of the poverty reduction capacity of these programmes. The paper finds that non-contributory pensions have a measurable and significant impact upon poverty reduction and poverty prevention in the two countries studied.

Keywords: policy, social protection, data, old age, South Africa, pensions, sub-Saharan Africa, Brazil, Latin America