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Pensions, informality, and the emerging middle class

Author

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  • Angel Melguizo

    (OECD Development Centre, France)

Abstract

A large share of the population in emerging market economies has no pension coverage, exposing them to the economic risks arising from socio-economic and individual shocks. This problem, which arises from having large informal (unregulated) sectors, affects not only poor workers, but as many as half the newly or nearly middle class in some emerging market economies. With very little social protection coverage today, these workers will also be vulnerable in the future unless tax, labor, and social policies change to encourage formalization. While formalization would require substantial resources in the short-term, it seems financially sustainable.

Suggested Citation

  • Angel Melguizo, 2015. "Pensions, informality, and the emerging middle class," World of Labour, LISER, pages 169-169, July.
    • Handle: RePEc:iza:izawol:journl:y:2015:n:169
    as

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    References listed on IDEAS

    as
    1. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
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    5. Nancy Birdsall, 2010. "The (Indispensable) Middle Class in Developing Countries; or, The Rich and the Rest, Not the Poor and the Rest," Working Papers 207, Center for Global Development.
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    9. James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1.
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    11. Bosch, Mariano & Melguizo, Ángel & Pagés, Carmen, 2013. "Better Pensions, Better Jobs: Towards Universal Coverage in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 462, August.
    12. Homi Kharas, 2010. "The Emerging Middle Class in Developing Countries," OECD Development Centre Working Papers 285, OECD Publishing.
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    Cited by:

    1. Margarita Velín-Fárez, 2021. "Population and Labor Dynamics in Large Informal Markets: Implications for Pension Systems with Evidence from Ecuador," Contemporary Economics, Vizja University, vol. 15(2), April.

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    More about this item

    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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