Voluntary Enrolment In The Peruvian Private Pension System
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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