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Assessing Redistribution in the Uruguayan Social Security System

Author

Listed:
  • Alvaro Forteza

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Irene Mussio

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

We assess redistribution in the Uruguayan main pension and unemployment insurance programs on a lifetime basis. Using administrative records from social security, we simulate lifetime declared labor income and flows of contributions and benefits of affiliates to the programs. Expected present values of income and net flows are also computed. Equipped with these estimations we construct standard measures of distribution and redistribution of lifetime labor income through the social security system. Our findings suggest that these programs reduce income inequality. In particular, social Security reduces the Gini coefficient of expected lifetime formal labor income by almost 2 percentage points.

Suggested Citation

  • Alvaro Forteza & Irene Mussio, 2011. "Assessing Redistribution in the Uruguayan Social Security System," Documentos de Trabajo (working papers) 1211, Department of Economics - dECON.
  • Handle: RePEc:ude:wpaper:1211
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    Cited by:

    1. Alvaro Forteza, 2015. "Are social security programs progressive?," IZA World of Labor, Institute of Labor Economics (IZA), pages 172-172, July.
    2. Alvaro Forteza, 2017. "Measuring the Redistributive Effect of Pensions," Documentos de Trabajo (working papers) 1317, Department of Economics - dECON.
    3. Alvaro Forteza, 2011. "Assessing Redistribution within Social Insurance Systems.The cases of Argentina, Brazil, Chile, Mexico and Uruguay," Documentos de Trabajo (working papers) 1311, Department of Economics - dECON.

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    More about this item

    Keywords

    Redistribution; Social Security; Uruguay;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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