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Non-Contributory Pensions Number-Gender Effects on Poverty and Household Decisions

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  • Miguel Ángel Borrella Mas

    () (Dpto. Fundamentos del Análisis Económico)

  • Mariano Bosch Mossi

    (Universidad de Alicante)

  • Marcello Sartarelli

    () (Dpto. Fundamentos del Análisis Económico)

Abstract

Non-contributory pensions, designed to reduce old-age poverty particularly in countries with low contributory coverage, may induce a variety of household behavioural responses. This paper tests whether they vary with beneficiaries number and gender in Bolivia, one of the countries with the lowest contributory coverage worldwide. Taking advantage of a discontinuity in eligibility at age 60 in the Renta Dignidad pension, we estimate these effects by using a bi-dimensional regression discontinuity design, with spouses' age as forcing variables. We find that, despite increasing income, the impact on poverty is mixed and not significant. Although potentially puzzling, this is rationalised by household responses. When receiving two pensions, household size increases due to beneficiaries' adult children working in the household and to grandchildren. In addition, female labour supply decreases weakly. When receiving one, instead, transfers to other households increase only if the beneficiary is male. Our results suggest that variation in beneficiaries number and gender plays a relevant role in explaining pension positive spillovers to households with no elderly.

Suggested Citation

  • Miguel Ángel Borrella Mas & Mariano Bosch Mossi & Marcello Sartarelli, 2016. "Non-Contributory Pensions Number-Gender Effects on Poverty and Household Decisions," Working Papers. Serie AD 2016-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2016-02
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    Cited by:

    1. Lin, Yujie, 2018. "The Impact of China's New Rural Pension Scheme on Family Labor Supply: Does the Beneficiary's Gender Matter?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274181, Agricultural and Applied Economics Association.
    2. Cecchini, Simone, 2020. "Universal Social Protection in Latin America and the Caribbean: selected texts 2006-2019," Páginas Selectas de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 45093 edited by Eclac.

    More about this item

    Keywords

    Consumption; labour supply; living arrangements; poverty; regression discontinuity; Renta Dignidad; social pension;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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