Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru
AbstractThe distributional impact of the structural pension reform in Latin American countries has been largely absent in the economic debate. However, this reform may widen inequality in old-age and reduce welfare. In this paper we study the consequences of implementing a multi-pillar system in one of these countries. We take advantage of available administrative records for Peruvian workers to estimate inequality in pensions, pension debt and welfare. Overall, our results show that the pension debt and inequality can be substantially reduced without welfare losses. Thus, the proposed multi-pillar system allows recovering the principle of solidarity and saves fiscal resources.
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 Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces09.11.
Date of creation: Jun 2009
Date of revision:
Pension reform; pension inequality; social security; Latin America; Peru.;
Other versions of this item:
- Javier Olivera, 2010. "Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru," Working Papers 152, ECINEQ, Society for the Study of Economic Inequality.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-11-14 (Economics of Ageing)
- NEP-ALL-2009-11-14 (All new papers)
- NEP-LAM-2009-11-14 (Central & South America)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leonardo Gasparini & Guillermo Cruces & Leopoldo Tornarolli & Mariana Marchionni, 2009. "A Turning Point? Recent Developments on Inequality in Latin America and the Caribbean," CEDLAS, Working Papers 0081, CEDLAS, Universidad Nacional de La Plata.
- Abigail Barr & Truman G. Packard, 2005.
"Seeking solutions to Vulnerability in Old Age: Preferences, constraints, and alternatives for coverage under Peru’s pension system,"
CSAE Working Paper Series
2005-05, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr & Truman G. Packard, 2005. "Seeking solutions to Vulnerability in Old Age: Preferences, constraints, and alternatives for coverage under Peru`s pension system," Economics Series Working Papers WPS/2005-05, University of Oxford, Department of Economics.
- Abigail Barr & Truman Packard, 2005. "Seeking solutions to vulnerability in old age: Preferences, constraints, and alternatives for coverage under peru`s pension system," Framed Field Experiments 00123, The Field Experiments Website.
- Lindbeck, Assar & Persson, Mats, 2002.
"The Gains from Pension Reform,"
Working Paper Series
580, Research Institute of Industrial Economics.
- Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karla Vander Weyden).
If references are entirely missing, you can add them using this form.