Institutional Pathways to Equity: Addressing Inequality Traps, Article Review Example

There are a number of aspects that influence the allocation and subsequent distribution of these resources in various spheres. Among the areas of interest that have manifested different resource allocation from various sectors is the family. The variation in resource allocation is as a result of a number of facets that often manifest differences from one family to the other. Among these aspects are the pension plans that are adopted in accordance with the gender of the parties and the ages. The labor supply within the family set ups also influences the resource allocations from various sources more so government pension aids (Clark, 2006). The size of the family and the composition will become crucial factors in determining the availability and the measures undertaken in the allocation of the resources. A number of models have been adopted to explicate the existing dynamics within the extended families that affect the availability and the allocation of this resource. The use of the regression model helps to present a critical analysis of the rate at which employment is dropping among men within the families. In connection with this, the paper will strive to elucidate various facets that affects the would contribute to the variation of resources in various spheres with close reference to the family. The paper will integrate the level of per capita income among Africans in South Africa taking into consideration the pension plans for the old age persons. Pension plan in line with the text is a government financial support plan that targets the old. The age limit for women is 60 whereas that for men is 65. It is pronounced in most of the communities that the availability of these pension plans have resulted affected an array of aspects in line with the various dynamics. The aspect of sharing of resources among extended families is also revealed to be a perspective that controls the resource availability in various domains (Clark, 2006).

Labor Supply

The age limit is presented to have a direct effect on the amount of labor supplied within the existing national sectors and within the family domain. It is generally understood in various developed economies that the aging community compromises the general labor supply realized. In comparison to the middle, the aging population besides lacking the extra energy to employed in demanding, this group of persons often lacks the motivation necessary in the course of labor provision. In addition, it has also become evident that the existence of various levels of pension plans has also contributed to the low supply among the old age individuals (Bertrand, Miller &Mullainathan, 2000). Owing to the provision of these financial aids by the governments and other organizations, the beneficiaries of the plan have opted to avoid extra employment activities due to the readily provided aids that help in meeting a number of financial needs of the beneficiaries (Clark, 2006).

The aspect of the working hours has also been greatly compromised, the availability of these pension plans in the country, South Africa, not have also contributed to persons reducing the times at workplaces. Apart from the beneficiaries, existence of these plans affected certain facets within the extended families. Initially, it is worth noting that these financial aids at times are accessed by persons that are not targeted within the extended families. In connection to this, the employment patterns of other members of the society are also affected. This is made evident in the statistics that presents low working hours figures of 6.3 and a percentage of 77 of the portion of the population that are unemployed (Bertrand, Miller &Mullainathan, 2000).

The aspect of eligibility of beneficiaries has been a challenge in the realization of effective pension plan execution. The setting of the age limits for beneficiaries has been a constraint in a number of countries more so in South Africa. The differences between the eligible and the ineligible has been small. Due to this bit, there is need for the various departments concerned to clearly initiate plans that will distinctly explain persons that are eligible for the aids in order to curb cases of ineligible persons being covered in the plan (Bertrand, Miller &Mullainathan, 2000).

Weak Point

Contrary to the discussion that the availability of resource and their subsequent usage solely depends on the old age pension plans, there are other economic and social factors that will greatly influence resource availability and allocation within families. Initially, the existing inflation levels within the country will play a critical role in influencing these aspects. Inflation to a greater extent will contribute to the quantity of money in supply among a given group of people. This will also influence the magnitude of the pensions offered (Bebbington, 2008).

Apart from the resource within the families, the patterns of employments will also be greatly affected by existing economic patterns within the domain of operation and not solely by the levels of pension provided. Industrial levels of operations and the offered wage rates will influence the desire of persons of getting placed in various jobs positions (Clark, 2006).

Finally, the text makes an assumption that a majority of members of the extended families inhabit together hence the influence. However, owing to changes in the social patterns and economic situations, families have opted to separate hence the assumption invalid.

The use of the regression model clearly reveals the relation of the pension plans to various economic factors within the county’s domain. Owing to affected employment patterns of the country, there is a general influence in the overall economic growth of the country. In South Africa, the introduction of a number of pension plans greatly resulted into the retarded growth of the country as persons are discouraged from seeking employment due to the readily available aids. In reaction to this, it necessary for necessary actions to be adopted that will encourage persons benefiting from the plans to still seek job opportunities in strive to better their living standards (Bebbington, 2008). However, in regard to persons within the prime age that fails to seek employment due to the availability of the pension plans within the families, strict regulations should be adopted by the respective governments to punish such individuals from willingly avoiding work. Another action that can be taken to curb the pronounced over-reliance on the pension aids is the increasing of the eligibility age, foe women, the age can be set at 65 and 70 in case of men. Through locking out large portion of persons, indulgence into incoming generative activities will be encouraged hence considerable economic developments will be realized within the country.

References

Bebbington, A. (2008). Institutional pathways to equity: Addressing inequality traps. Washington, DC: World Bank.

Bertrand, M., Miller, D., & Mullainathan, S. (2000). Public policy and extended families: Evidence from South Africa. Cambridge, Mass: NBER.

Clark, G. L. (2006). The Oxford handbook of pensions and retirement income. Oxford [u.a.: Oxford Univ. Press.