Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru
The distributional impact of the structural pension reform in Latin American countries has been largely absent in the economic debate. However, this reform may widen inequality in old-age and reduce welfare. In this paper we study the consequences of implementing a multi-pillar system in one of these countries. We take advantage of available administrative records for Peruvian workers to estimate inequality in pensions, pension debt and welfare. Overall, our results show that the pension debt and inequality can be substantially reduced without welfare losses. Thus, the proposed multi-pillar system allows recovering the principle of solidarity and saves fiscal resources.
|Date of creation:||Jun 2009|
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- Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
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- Abigail Barr & Truman G. Packard, 2005.
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Economics Series Working Papers
WPS/2005-05, University of Oxford, Department of Economics.
- Abigail Barr & Truman G. Packard, 2005. "Seeking solutions to Vulnerability in Old Age: Preferences, constraints, and alternatives for coverage under Peru’s pension system," CSAE Working Paper Series 2005-05, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr & Truman Packard, 2005. "Seeking solutions to vulnerability in old age: Preferences, constraints, and alternatives for coverage under peru`s pension system," Framed Field Experiments 00123, The Field Experiments Website.
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