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Designing cash transfer programs for an older population: The Mexican case

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  • Aguila, Emma
  • Kapteyn, Arie
  • Tassot, Caroline

Abstract

Aging populations and the prevalence of poverty in old age have led to the introduction of noncontributory pensions in many countries. We consider a number of alternative targeting approaches and simulate their effects in an empirical application in the State of Yucatan, Mexico. We compare the approaches with respect to leakage, under-coverage, and their effects on government budgets. We are also able to compare the simulated effects of one alternative with the observed effect of a recently introduced demogrant and find that the simulation is a close approximation of the empirical outcomes. We discuss issues of implementation and political feasibility.

Suggested Citation

  • Aguila, Emma & Kapteyn, Arie & Tassot, Caroline, 2017. "Designing cash transfer programs for an older population: The Mexican case," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 111-121.
    • Handle: RePEc:eee:joecag:v:9:y:2017:i:c:p:111-121
    DOI: 10.1016/j.jeoa.2016.09.001
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    Cited by:

    1. Habimana, Dominique & Haughton, Jonathan & Nkurunziza, Joseph & Haughton, Dominique Marie-Annick, 2021. "Measuring the impact of unconditional cash transfers on consumption and poverty in Rwanda," World Development Perspectives, Elsevier, vol. 23(C).
    2. Aguila, Emma & Smith, James P., 2020. "Supplemental income program design: A cluster-randomized controlled trial to examine the health and wellbeing effects on older adults by gender, duration, and payment frequency," Social Science & Medicine, Elsevier, vol. 259(C).
    3. Clemente Ávila‐Parra & David Escamilla‐Guerrero & Oscar Gálvez‐Soriano, 2024. "Minimum eligibility age for social pensions and household poverty: Evidence from Mexico," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 175-196, January.

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    More about this item

    Keywords

    Targeting; Cash transfer programs; Noncontributory pension programs; Older population; Mexico;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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