Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru
Abstract
The 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 Info
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Paper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/237022.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:ner:leuven:urn:hdl:123456789/237022
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Web page: http://www.kuleuven.be
Related research
Keywords: 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
References
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- 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.
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- 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.
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- 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.
- Carmen A Li & Javier Olivera, 2008. "Voluntary Enrolment In The Peruvian Private Pension System," Working Papers 86 Key Words: Latin Ameri, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
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