Old Age Allowance and Its Implications for Household Food Expenditure and Farming Investment: Evidence from Bangladesh

ABSTRACT: The global demographic shift marked by the growing proportion of elderly individuals has prompted the urgent need to address the potential burden posed on households by these individuals. Safety net programs, such as the old age allowance (OAA), have been implemented in developing countries to protect the food security and social dignity of older individuals. This study investigates the impact of OAA on food expenditure and farming investment. By analyzing data from the Household Income and Expenditure Survey (HIES) in Bangladesh from 2016 to 2017, the findings show a transformative shift as OAA enhances investment in farming assets. However, OAA did not affect food expenditure. Additionally, this study validates the family transfer model, suggesting that financially supporting older family members contributes positively to the overall household economy. This study suggests that the allowance and coverage of OAA should be increased to ensure food security for older people. KEYWORDS: elderly people, old age allowance, food expenditure, farming asset