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Gender Effects of Social Security Reform in Chile

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  • Alejandra Cox Edwards

Abstract

In 1981 Chile replaced a mature government-run social security system that operated on a pay-as-you-go basis with a privately managed system based on individual retirement accounts. The new system is more fiscally sustainable because pension benefits are defined by contributions. The minimum pension guaranteed to beneficiaries with at least 20 years is funded from general taxes, preserving the tight matching between contributions and benefits. The new system also eliminates several cross-subsidies. Men and women with less than secondary education gain under the new system, but single women with more education lose. Comparison of the old and the new systems reveals a complex set of factors that cause gender effects given constant behavior or change behavior across genders. Copyright 2002, Oxford University Press.

Suggested Citation

  • Alejandra Cox Edwards, 2002. "Gender Effects of Social Security Reform in Chile," The World Bank Economic Review, World Bank, vol. 16(3), pages 321-343, December.
    • Handle: RePEc:oup:wbecrv:v:16:y:2002:i:3:p:321-343
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    Cited by:

    1. World Bank, 2012. "Resilience, Equity, and Opportunity [Capacidad de recuperación, equidad y oportunidades]," World Bank Publications - Reports 12648, The World Bank Group.
    2. Andras Simonovits, 2009. "Hungarian Pension System and its Reform," CERS-IE WORKING PAPERS 0908, Institute of Economics, Centre for Economic and Regional Studies.
    3. James, Estelle & Edwards, Alejandra Cox & Wong, Rebecca, 2003. "The gender impact of pension reform : a cross-country analysis," Policy Research Working Paper Series 3074, The World Bank.

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