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Social Pensions and Mortality among Older Adults in Extreme Poverty: Evidence from Peru

Author

Listed:
  • Valderrama, Jose

    (Universidad de Lima)

  • Olivera, Javier

    (Luxembourg Institute of Socio-Economic Research (LISER))

Abstract

We examine the effects of Peru's non-contributory pension programme, Pension 65, on mortality among older adults living in extreme poverty. Using baseline survey data linked to administrative mortality records for 2012–2016, we employ a regression discontinuity design exploiting the welfare-index threshold that determines programme eligibility. We find that eligibility reduces four-year mortality by 10.7 percentage points. A complementary actuarial calculation suggests a gain of approximately one year in life expectancy at age 65 among eligible individuals. We also find that eligibility increases healthcare utilisation, but not public health insurance enrolment or preventive care, suggesting that greater use of existing healthcare services may contribute to improved survival. Our findings highlight the potential of social pensions to reduce mortality among the poorest older adults.

Suggested Citation

  • Valderrama, Jose & Olivera, Javier, 2026. "Social Pensions and Mortality among Older Adults in Extreme Poverty: Evidence from Peru," IZA Discussion Papers 19018, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp19018
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    Keywords

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    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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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