Does Pension Reform Really Spur Productivity, Saving, and Growth?
AbstractSubstituting a fully-funded system for a pay-as-you-go regime provides potential efficiency gains in factor markets, can contribute to higher saving, and hence could raise growth. But pension reformers face significant uncertainty about the size and timing of these benefits. This paper sheds light on this issue in two directions. First it reviews recent world-wide empirical and simulations evidence on pension systems and reforms to infer about the likely factor market benefits and potential saving effects of pension reform and their quantitative implications for growth. Then new evidence is provided for Chile, the country with the oldest and most radical pension reform to date. The results suggest that Chile's pension reform has improved labor-market performance and raised saving, investment, and factor productivity, contributing to a quarter of the country's growth increase.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 33.
Date of creation: Apr 1998
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Eduardo Walker & Fernando Lefort, 2002.
"Pension Reform And Capital Markets: Are There Any (Hard) Links?,"
Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 5(2), pages 77-149.
- Walker, Eduardo & Lefort, Fernando, 2002. "Pension reform and capital markets : are there any (hard) links?," Social Protection Discussion Papers 24082, The World Bank.
- Francisco Gallego & Felipe Morandé & Raimundo Soto, 2001. "El Ahorro y el Consumo de Bienes Durables Frente al Ciclo Económico en Chile: ¿Consumismo, Frugalidad, Racionalidad?," Working Papers Central Bank of Chile 96, Central Bank of Chile.
- Axel Börsch-Supan, 2003. "What are NDC Pension Systems? What Do They Bring to Reform Strategies?," MEA discussion paper series 03042, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Jeannine Bailliu & Helmut Reisen, 1998.
"Do funded pensions contribute to higher aggregate savings? A cross-country analysis,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 134(4), pages 692-711, December.
- Jeanine Bailliu & Helmut Reisen, 1997. "Do Funded Pensions Contribute to Higher Aggregate Savings?: A Cross-Country Analysis," OECD Development Centre Working Papers 130, OECD Publishing.
- Axel Börsch-Supan, 2000. "Was lehrt uns die Empirie in Sachen Rentenreform?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(4), pages 431-451, November.
- Bravo, Jorge H., 2001. "The Chilean Pension System: A Review of Some Remaining Difficulties After 20 Years of Reform," Discussion Paper 7, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).
If references are entirely missing, you can add them using this form.