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Assessing Redistribution in the Uruguayan Social Security System

Author

Listed:
  • Alvaro Forteza

    () (Universidad de la República)

  • Irene Mussio

    () (Universidad de la República)

Abstract

We assess redistribution in the main Uruguayan pension and unemployment insurance programs on a lifetime basis. Using administrative records from Social Security, we simulate lifetime declared labor income and flows of contributions and benefits to affiliates to the programs. Expected present values of income and net flows are also computed. Equipped with these estimations, we construct standard measures of distribution and redistribution of lifetime labor income through the Social Security system. Our findings suggest that these programs reduce income inequality. In particular, Social Security reduces the Gini coefficient of expected lifetime formal labor income by almost 2 percentage points.

Suggested Citation

  • Alvaro Forteza & Irene Mussio, 2012. "Assessing Redistribution in the Uruguayan Social Security System," Journal of Income Distribution, Journal of Income Distribution, vol. 21(1), pages 65-87, March.
  • Handle: RePEc:jid:journl:y:2012:v:21:i:1:p:65-87
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    References listed on IDEAS

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    1. Philippe Michel & Pierre Pestieau, 2013. "Social Security And Early Retirement In An Overlapping-Generations Growth Model," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 723-737, November.
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    7. Alvaro Forteza & Ianina Rossi, 2009. "The contribution of government transfer programs to inequality. A net-benefit approach," Journal of Applied Economics, Universidad del CEMA, vol. 12, pages 55-67, May.
    8. Ferrer, Ana M. & Riddell, W. Craig, 2009. "Unemployment insurance savings accounts in Latin America : overview and assessment," Social Protection and Labor Policy and Technical Notes 49173, The World Bank.
    9. Alvaro Forteza & Ignacio Apella & Eduardo Fajnzylber & Carlos Grushka & Ianina Rossi & Graciela Sanroman, 2009. "Work Histories and Pension Entitlements in Argentina, Chile and Uruguay," Working Papers 32, Superintendencia de Pensiones, revised Sep 2009.
    10. Ann Huff Stevens, 1999. "Climbing out of Poverty, Falling Back in: Measuring the Persistence of Poverty Over Multiple Spells," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 557-588.
    11. Sutherland, Holly, 2001. "EUROMOD: an integrated European benefit-tax model: final report," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research.
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    13. Forteza, Alvaro & Ourens, Guzmán, 2012. "Redistribution, insurance and incentives to work in Latin-American pension programs," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(03), pages 337-364, July.
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    Citations

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    Cited by:

    1. Alvaro Forteza, 2015. "Are social security programs progressive?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 172-172, July.
    2. Alvaro Forteza, 2017. "Measuring the Redistributive Effect of Pensions," Documentos de Trabajo (working papers) 1317, Department of Economics - dECON.
    3. Alvaro Forteza, 2011. "Assessing Redistribution within Social Insurance Systems.The cases of Argentina, Brazil, Chile, Mexico and Uruguay," Documentos de Trabajo (working papers) 1311, Department of Economics - dECON.

    More about this item

    Keywords

    redistribution; social security; Uruguay;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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