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

  • Giang, Thanh Long
  • Pfau, Wade Donald

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24947.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:24947
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  1. Nanak Kakwani & Kalanidhi Subbarao, 2005. "Ageing and Poverty in Africa and the Role of Social Pensions," World Bank Other Operational Studies 8535, The World Bank.
  2. 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.
  3. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-61, September.
  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. Hyun H. Son & Nanak Kakwani, 2006. "Old-Age Poverty and Social Pensions in Kenya," One Pager 25, International Policy Centre for Inclusive Growth.
  6. 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.
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