Old Age Consumption and Pension Policy in a Two-Tier Developing Economy
AbstractIn a number of developing countries, an important part of the economy is informal both in terms of production and of social protection. In this paper we consider introducing a universal pension system in the formal sector. It is shown to have two main effects: first, it makes the formal sector more attractive to migration and second, it affects capital accumulation in a way that depends on the type of social security introduced, PAYG or funded, and its induced effect on private saving.
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Bibliographic InfoArticle provided by Finnish Economic Association in its journal Finnish Economic Papers.
Volume (Year): 16 (2003)
Issue (Month): 1 (Spring)
Other versions of this item:
- MICHEL, Philippe & PADDISON, Oliver & PESTIEAU, Pierre, . "Old age consumption and pension policy in a two-tier developing economy," CORE Discussion Papers RP -1628, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- PADDISON, Oliver & PESTIEAU, Pierre, 2001. "Old age consumption and pension policy in a two-tier developing economy," CORE Discussion Papers 2001045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
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