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An Exploration for a Universal Non-contributory Pension Scheme in Vietnam

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  • Giang, Thanh Long
  • Pfau, Wade Donald

Abstract

Briefly, some of our findings are as follows. First, the impacts of a universal NCP scheme on poverty rates and the poverty gap of the older persons would be significant, but become less potent when the eligibility age is higher. In particular, with the benefits provided, the older persons who are females; who are married; who are living in urban areas; who are working, or who are receiving social insurance benefits would be more likely to reduce their poverty rates and poverty gaps than other elderly groups. Second, the financial simulations show that the cost of the scheme, which provides a benefit equal to 50.0 per cent of the official poverty line to all the persons aged 60 and over, would be about 1.2 per cent of GDP in 2004. As population ages as in the projections of the United Nations (2007a), the cost would be higher, but only as high as about 3.0 per cent of GDP.

Suggested Citation

  • Giang, Thanh Long & Pfau, Wade Donald, 2009. "An Exploration for a Universal Non-contributory Pension Scheme in Vietnam," MPRA Paper 24947, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24947
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    File URL: https://mpra.ub.uni-muenchen.de/24947/1/MPRA_paper_24947.pdf
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    References listed on IDEAS

    as
    1. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    2. Nanak Kakwani & Kalanidhi Subbarao, 2005. "Ageing and Poverty in Africa and the Role of Social Pensions," World Bank Publications - Reports 8535, The World Bank Group.
    3. Hyun H. Son & Nanak Kakwani, 2006. "Old-Age Poverty and Social Pensions in Kenya," One Pager 25, International Policy Centre for Inclusive Growth.
    4. Nanak Kakwani & Kalanidhi Subbarao, 2005. "Ageing and poverty in Africa and the role of social pensions," Working Papers 8, International Policy Centre for Inclusive Growth.
    5. Giang, Thanh Long & Pfau, Wade Donald, 2007. "Patterns and Determinants of Living Arrangements for the Elderly in Vietnam," MPRA Paper 24949, University Library of Munich, Germany.
    6. Haroon Bhorat, 2003. "Estimates for Poverty Alleviation in South Africa, with An Application to a Universal Income Grant," Working Papers 03075, University of Cape Town, Development Policy Research Unit.
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    Cited by:

    1. Long T. Giang & Wade D. Pfau, 2009. "Vulnerability of Vietnamese Elderly to Poverty: Determinants and Policy Implications," Asian Economic Journal, East Asian Economic Association, vol. 23(4), pages 419-437, December.
    2. Giang, Long Thanh & Pfau, Wade Donald, 2009. "A Gender Perspective on Elderly Work in Vietnam," MPRA Paper 24946, University Library of Munich, Germany.
    3. Giang Thanh Long & Dharmapriya Wesumperuma, 2013. "Some Notes on Social Pensions in Viet Nam," One Pager 210, International Policy Centre for Inclusive Growth.

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    More about this item

    Keywords

    Vietnam; non-contributory pension;

    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

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