IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Is There an Endogenous Problem if Sustainability on the Pay-as-you-go Social Security System? Using the Chilean Experience as an Experiment

Listed author(s):
  • Rodrigo Cerda


    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

The paper provides empirical evidence about the effects of the "pay-as-you-go" and the individual account social security systems over the family choice variables such as fertility rate, schooling, and time spent on children and it links those effects with the sustainability of the fiscal budget on the "pay-as-you-go"system. The paper uses the 1998 CASEN database from Chile. On the database, the "pay-as-you-go" and the individual account systems coexist for individuals 35 years and older as result of the regulations established by the 1981 social security reform law. The results show that the numbers of children per family and female labor supply are depressed by increases on the "pay-as-you-go" payroll tax rate. Those effects produce an endogenous sustainability problem over the fiscal budget, as the number of individuals paying taxes and the amount of taxes paid by females decrease endogenously over time. The individual system does not show effect at all over the family decision choice analyzed.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Instituto de Economia. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 203.

in new window

Date of creation: 2002
Handle: RePEc:ioe:doctra:203
Contact details of provider: Postal:
Avda. Vicuña Mackenna 4860, Macul, Santiago

Phone: (562) 354-4303
Fax: (562) 553-1664
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ioe:doctra:203. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jaime Casassus)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.