IMPACTS OF PRIME-AGE ADULT MORTALITY ON ADOLESCENTS’ LABOR SUPPLY 91
Several findings emerge from the analysis. I find first that deaths of prime- age working adults significantly increase the labor supply of both male and female adolescents, stopping their schooling. Deaths of prime-age adults in the future decrease female school enrollment, suggesting that girls shift activ- ity, possibly staying at home to take care of the sick or of the household more generally. Second, since the enrollment of male adolescents is decreased prior to the death of a working adult, their response is different, intended to com- pensate for an income loss. These findings imply that excess mortality among prime-age adults disrupts human capital formation in the society.
Mortality Change
The 2004 KIDS data allow us to link death with specific changes among house- hold members, because the data contain retrospective information on those who died between 1998 and 2004. More specifically, the data allow an identi- fication of the individuals who died and when the death occurred. (However, to minimize emotional distress, respondents were not asked about deaths when these had occurred up to three months prior to the 2004 survey.) Com- bining this information with the roster information on individuals in 1998, I can identify the age at death. This information is critical for our analysis as it enables us to identify changes over the period 1998–2004. This corresponds to the time when South Africa experienced substantial increases in prime-age adult mortality (for example, Groenewald et al. 2005; Statistics South Africa 2005). In other words, the period covered is quite appropriate to identify the impacts of prime-age adult mortality on the time allocation decisions of children and housewives.
Figures 5.1 and 5.2 show the changes in mortality rates between 1998 and 2004 for the populations of males and of females, respectively. One of the two series plotted on the figures presents information gathered from the surveyed households. The changes are reported across age groups. Each fig- ure illustrates the non-AIDS mortality rate for South Africa as one of the two series. These data are from the 2002 model estimates of the Actuarial Society of South Africa (ASSA) for 1996 and for all racial groups. Data for 1996 were chosen to provide a credible non-AIDS mortality rate relative to the period spanned by the KIDS data. Age-specific non-AIDS mortality rates for men and women are the benchmark rates against which the KIDS mortality rates— the second data series in Figures 5.1 and 5.2—are considered in this section (see Table 5.1). Since the sample period I consider spans six years, the mor- tality rate of the KIDS household members over the period is converted into annual terms assuming a constant mortality rate throughout the period. The two figures show significant increases in adult mortality for those aged 20–44 across gender—the gap between the two lines in the two figures reflects
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