Social Security Privatization Reform and Labor Markets: The Case of Chile
AbstractWe analyze the way in which social security privatization reform affects labor market outcomes. We develop a model of the labor market where we assume that, as is the case in most emerging markets, a formal and an informal sectors coexist side by side. According to our model, a social security reform that reduces the implicit tax on labor in the formal sector, will result in an increase in the wage rate in the informal sector and will have an undetermined effect on aggregate unemployment. Results from simulation exercises suggest that in the case of Chile the reforms resulted in an increase in informal sector wages of approximately 2.0%. These results also suggest that the reforms made a positive, but small, contribution to the reduction of Chile's aggregate of unemployment.
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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8924.
Date of creation: May 2002
Date of revision:
Note: AG LS PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-05-14 (All new papers)
- NEP-LAM-2002-05-14 (Central & South America)
- NEP-PBE-2002-05-14 (Public Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lemos, Sara, 2004.
"The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil,"
IZA Discussion Papers
1089, Institute for the Study of Labor (IZA).
- Sara lemos, 2004. "The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil," Discussion Papers in Economics 04/8, Department of Economics, University of Leicester.
- Rodrigo Cerda, 2006. "Pensiones en Chile: Â¿QuÃ© Hubiese Ocurrido sin la Reforma de 1981?," Documentos de Trabajo 310, Instituto de Economia. Pontificia Universidad Católica de Chile..
- Estelle James & Alejandra Cox Edwards, 2005. "Do Individual Accounts Postpone Retirement: Evidence from Chile," Working Papers wp098, University of Michigan, Michigan Retirement Research Center.
- Esteban Puentes & Dante Contreras & Claudia Sanhueza, 2007. "Self-Employment in Chile, long run trends and education and age structures changes," Estudios de Economia, University of Chile, Department of Economics, vol. 34(2 Year 20), pages 203-247, December.
- Paula Auerbach & María Eugenia Genoni & Carmen Pagés-Serra, 2005. "Cobertura del sistema de seguridad social y el mercado laboral en países en desarrollo," Research Department Publications 4422, Inter-American Development Bank, Research Department.
- Cerda, Rodrigo A., 2008. "The Chilean pension reform: A model to follow?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 541-558.
- Ximena Quintanilla, 2011. "Moving from a Pay as You Go to a Defined Contributions Pension Scheme: Does it Boost Participation in the Formal Labour," Working Papers 48, Superintendencia de Pensiones, revised Sep 2011.
- Adriana Kugler, 2011. "Is there an Anti-labor Bias of Taxes? A Survey of the Evidence from Latin America and Around the World," Research Department Publications 4746, Inter-American Development Bank, Research Department.
- Dochka Velkova, 2008. "Changes in the Public Pension System and Their Impact on the Labor Market," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 22-59.
- Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications, The World Bank, number 7336.
- Paula Auerbach & María Eugenia Genoni & Carmen Pagés-Serra, 2005.
"Social Security Coverage and the Labor Market in Developing Countries,"
Research Department Publications
4421, Inter-American Development Bank, Research Department.
- Auerbach, Paula & Genoni, Maria Eugenia & Pagés, Carmen, 2007. "Social Security Coverage and the Labor Market in Developing Countries," IZA Discussion Papers 2979, Institute for the Study of Labor (IZA).
- Dayoub, Mariam & Lasagabaster, Esperanza, 2008. "General trends in competition policy and investment regulation in mandatory defined contribution markets in Latin America," Policy Research Working Paper Series 4720, The World Bank.
- Andrea Repetto, 2012. "Productivity, Misallocation and the Labor Market," Working Papers wp_020, Adolfo Ibáñez University, School of Government.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.