Evaluating the Impact of Social Security Insurance on the Wellbeing of Pensioners in Ghana Using the Regression Discontinuity Framework

Abstract

This paper assesses the effect of pension receipt on household and individual wellbeing in Ghana using a fuzzy regression discontinuity design. We used data obtained from 3,086 individuals of which retired workers constituted 33% of the final sample. Data was extracted from the current wave of the Ghana Living Standards Survey (GLSS 7). We find pension receipts is significantly and positively associated with expenditure for outpatient services and energy use but significantly reduces expenditure on alcohol and smoking and food consumption at the household level. However, at the individual level, we detected an increase in body mass index and acquisition of home appliances; along with a reduction in hospitalisation and consultation.