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Basic Pensions and Poverty Reduction in Sub-Saharan Africa

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  • Ousmane Faye

Abstract

This paper investigates the role of basic pensions in alleviating poverty in sub- Saharan Africa. Using the most recent Senegalese household income-expenditure data survey, we construct scenarios of universal and means-tested basic pension schemes with different generosity levels. Simulations indicate that basic pension benefits have sizeable impact on poverty reduction amongst households, with elderly members, which translates into large decreases in aggregate poverty measures. The paper also analyzes the fiscal costs of basic pensions and shows that these are fiscally affordable as long as pension levels are reasonable. This suggests that basic pension programs could be financially sustainable in sub-Saharan African.

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Paper provided by Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège in its series CREPP Working Papers with number 0707.

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Date of creation: 2007
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Handle: RePEc:rpp:wpaper:0707

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  1. Irineu E. Carvalho Filho, 2008. "Household Income As a Determinant of Child Labor and School Enrollment in Brazil," IMF Working Papers, International Monetary Fund 08/241, International Monetary Fund.
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