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How Do Social Security and Income Affect the Living Arrangements of the Elderly? Evidence from Reforms in Mexico and Uruguay

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  • Naoko Shinkai
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    Abstract

    It has been shown that the social security system and other sorts of government transfers have helped poor elderly people, such as widows, to live alone in the U. S. This paper investigates whether government financial support contributed to the increase in the probability of the vulnerable elderly living alone in Latin American countries as well. Specifically, the countries that in the 1980s experienced government reforms favorable to the vulnerable elderly, Mexico and Uruguay, are examined. It is concluded that the improvement of educational attainment was mainly responsible for helping the elderly poor to live alone in rural areas in Mexico, and not the government system. On the other hand, in Uruguay, for unmarried elderly females, the increase in social security income explains most of the increase in the probability of living alone.

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    Bibliographic Info

    Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4231.

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    Date of creation: Oct 2000
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    Handle: RePEc:idb:wpaper:4231

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    1. Costa, Dora L., 1999. "A house of her own: old age assistance and the living arrangements of older nonmarried women," Journal of Public Economics, Elsevier, vol. 72(1), pages 39-59, April.
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    6. Suzanne Duryea & Miguel Székely, 1998. "Labor Markets in Latin America: A Supply-Side Story," Research Department Publications 4120, Inter-American Development Bank, Research Department.
    7. Laurence J. Kotlikoff & John Morris, 1988. "Why Don't the Elderly Live With Their Children? A New Look," NBER Working Papers 2734, National Bureau of Economic Research, Inc.
    8. Eduardo Lora & Gustavo Márquez, 1998. "The Employment Problem in Latin America: Perceptions and Stylized Facts," IDB Publications 6437, Inter-American Development Bank.
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    10. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
    11. Hoerger, Thomas J. & Picone, Gabriel & Sloan, Frank, 1995. "Public Subsidies, Private Provision of Care, and Living Arrangements of the Elderly," Working Papers 95-22, Duke University, Department of Economics.
    12. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S151-82, July.
    13. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    14. Vassilis A. Hajivassiliou & Axel Borsch-Supan, 1990. "Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models," Cowles Foundation Discussion Papers 960, Cowles Foundation for Research in Economics, Yale University.
    15. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
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    17. Axel Börsch-Supan, 1989. "Household Dissolution and the Choice of Alternative Living Arrangements among Elderly Americans," NBER Chapters, in: The Economics of Aging, pages 119-150 National Bureau of Economic Research, Inc.
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