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Voluntary Enrolment In The Peruvian Private Pension System

  • Carmen A. Li

    ()

    (Department of Economics, University of Essex)

  • Javier Olivera

    (Department of Economics, Katholieke Universiteit Leuven)

One of the important aspects in the design of social protection is coverage. In Peru, as in most Latin American countries, social security participation is compulsory only for workers in the ‘formal’ sector. We investigate the determinants of voluntary enrolment in the private pension system in Peru. We found that a selected group of people i.e. married males (with more than high school education) living in high income households and with other family members already participating in the pension system, have a higher likelihood of participation. Although the results suggest that family based safety nets might be substitutes for pension participation, pension coverage and poverty relief remain as challenges for government involvement.

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Paper provided by UCL School of Slavonic and East European Studies (SSEES) in its series UCL SSEES Economics and Business working paper series with number 86.

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Length: 33 pages
Date of creation: Feb 2008
Handle: RePEc:see:wpaper:86
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