IDEAS home Printed from https://ideas.repec.org/p/mrr/papers/wp245.html
   My bibliography  Save this paper

First-Round Impacts of the 2008 Chilean Pension System Reform

Author

Listed:
  • Jere R. Behrman

    (University of Pennsylvania)

  • Maria Cecilia Calderon

    (Population Council)

  • Olivia S. Mitchell

    (Wharton School, University of Pennsylvania)

  • Javiera Vasquez

    (Universidad de Chile)

  • David Bravo

    (Universidad de Chile)

Abstract

Chile’s innovative privatized pension system has been lauded as possible model for Social Security system overhauls in other countries, yet it has also been critiqued for not including a strong safety net for the uncovered sector. In response, the Bachelet government in 2008 implemented reforms to rectify this shortcoming. Here we offer the first systematic effort to directly evaluate the reform’s impacts, focusing on the new Basic Solidarity Pension for poor households with at least one person age 65+. Using the Social Protection Survey, we show that targeted poor households received about 2.4 percent more household annual income, with little evidence of crowding-out of private transfers. We also suggest that recipient household welfare probably increased due to slightly higher expenditures on basic consumption including healthcare, more leisure hours, and improved self-reported health. While measured short-run effects are small, follow-ups will be essential to gauge longer-run outcomes.

Suggested Citation

  • Jere R. Behrman & Maria Cecilia Calderon & Olivia S. Mitchell & Javiera Vasquez & David Bravo, 2011. "First-Round Impacts of the 2008 Chilean Pension System Reform," Working Papers wp245, University of Michigan, Michigan Retirement Research Center.
  • Handle: RePEc:mrr:papers:wp245
    as

    Download full text from publisher

    File URL: http://www.mrrc.isr.umich.edu/publications/Papers/pdf/wp245.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Elizabeth M. King & Jere R. Behrman, 2009. "Timing and Duration of Exposure in Evaluations of Social Programs," World Bank Research Observer, World Bank Group, vol. 24(1), pages 55-82, February.
    2. Francisco Pino & Solange Berstein & Guillermo Larraín, 2006. "Chilean Pension Reform: Coverage Facts and Policy Alternatives," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Spring 20), pages 227-279, January.
    3. Jere R. Behrman & Olivia S. Mitchell & Cindy Soo & David Bravo, 2010. "Financial Literacy, Schooling, and Wealth Accumulation," NBER Working Papers 16452, National Bureau of Economic Research, Inc.
    4. Samia Amin & Jishnu Das & Markus Goldstein, 2008. "Are You Being Served? New Tools for Measuring Services Delivery," World Bank Publications, The World Bank, number 6921, July.
    5. Barr, Nicholas & Diamond, Peter, 2008. "Reforming Pensions: Principles and Policy Choices," OUP Catalogue, Oxford University Press, number 9780195311303.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. First-Round Impacts of the 2008 Chilean Pension System Reform
      by maximorossi in NEP-LTV blog on 2012-01-07 04:28:43
    2. First-Round Impacts of the 2008 Chilean Pension System Reform
      by Maximo Rossi in Wikiprogress América Latina on 2012-01-06 03:24:00
    3. First-Round Impacts of the 2008 Chilean Pension System Reform
      by maximorossi in NEP-LTV blog on 2012-01-07 04:28:43

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gary Mena & Werner L. Hernani-Limarino, 2015. "Intended and Unintended Effects of Unconditional Cash Transfers: The Case of Bolivia's Renta Dignidad," IDB Publications (Working Papers) 7350, Inter-American Development Bank.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mrr:papers:wp245. 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: (MRRC Administrator). General contact details of provider: http://edirc.repec.org/data/isumius.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.