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.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/237022.
Date of creation: 2009
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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.
- Javier OLIVERA, 2009. "Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru," Center for Economic Studies - Discussion papers ces09.11, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- 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 and Poverty - - - General
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
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.:
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