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Another brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being

Author

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  • Rosangela Bando
  • Sebastian Galiani
  • Paul Gertler

Abstract

Public expenditures on non-contributory pensions are equivalent to at least 1 percent of GDP in several countries in Latin America and is expected to increase. We explore the effect of non-contributory pensions on the well-being of the beneficiary population by studying the Pensiones Alimentarias program established by law in Paraguay, which targets older adults living in poverty. Households with a beneficiary increased their level of consumption by 44 percent. The program improved subjective well-being in 0.48 standard deviations. These effects are consistent with the findings of Bando, Galiani and Gertler (2020) and Galiani, Gertler and Bando (2016) in their studies on the non-contributory pension schemes in Peru and Mexico. Thus, we conclude that the effects of non-contributory pensions on well-being in Paraguay are comparable to those found for Peru and Mexico and add to the construction of external validity.

Suggested Citation

  • Rosangela Bando & Sebastian Galiani & Paul Gertler, 2021. "Another brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being," NBER Working Papers 28318, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28318
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    Cited by:

    1. Khanna, Gaurav & Lay, Margaret J. & Lee, Stephanie & Thompson, Benjamin, 2025. "Female labor supply and rural pension eligibility in Brazil," Journal of Public Economics, Elsevier, vol. 245(C).
    2. Roychowdhury, Punarjit, 2024. "Social Identity and Depression Among the Elderly: Evidence from India," GLO Discussion Paper Series 1466, Global Labor Organization (GLO).
    3. Cristina Belles-Obrero & Giulia La Mattina & Han Ye, 2024. "Social Pensions and Intimate Partner Violence Against Older Women," CRC TR 224 Discussion Paper Series crctr224_2024_602v2, University of Bonn and University of Mannheim, Germany, revised May 2025.
    4. Maria Laura Alzua & Natalia Cantet & Ana C Dammert & Damilola Olajide, 2024. "The Well-being Effects of an Old-Age Pension: Experimental Evidence for Ekiti State in Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 33(3), pages 240-270.
    5. Cristina Bellés Obrero & Giulia La Mattina & Hen Ya, 2025. "Social Pensions and Intimate Partner Violence against Older Women," Working Papers 1491, Barcelona School of Economics.
    6. Guimbeau, Amanda & Menon, Nidhiya, 2024. "Pensions and Depression: Gender-Disaggregated Evidence from the Elderly Poor in India," IZA Discussion Papers 17530, Institute of Labor Economics (IZA).
    7. Clemente Ávila‐Parra & David Escamilla‐Guerrero & Oscar Gálvez‐Soriano, 2024. "Minimum eligibility age for social pensions and household poverty: Evidence from Mexico," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 175-196, January.
    8. repec:bon:boncrc:crctr224_2024_602 is not listed on IDEAS

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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