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The effects of social pensions on monetary and time transfers among the poor

Author

Listed:
  • Javier Olivera

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

  • Yadiraah Iparraguirre

    (Pontificia Universidad Católica de Chile)

Abstract

We study the effects of Peru’s social pension program, Pension 65, on family transfers of money and time. The program provides pensions to individuals aged 65 and over who are officially classified as extremely poor and who do not receive other pensions. We use survey data matched to the program’s administrative registers and exploit the discontinuity around the welfare index that determines eligibility to estimate the intention-to-treat effects of the program on family transfers. We find that Pension 65 reduces monetary family transfers by 70% (the effect is 97% for men). There is a substantial increase in childcare hours among men, from 1 to 7 hours per week. This result is consistent with an increase in the number of young children in the household and with a reduction in time spent on leisure activities among men. Palabras claves: Pensiones sociales, transferencias familiares, uso del tiempo, pobreza JEL Classification-JE: H55, I38, J14, J26

Suggested Citation

  • Javier Olivera & Yadiraah Iparraguirre, 2026. "The effects of social pensions on monetary and time transfers among the poor," Documentos de Trabajo / Working Papers 2026-553, Departamento de Economía - Pontificia Universidad Católica del Perú.
    • Handle: RePEc:pcp:pucwps:wp00553
    DOI: 10.18800/2079-8474.0553
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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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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