Lifetime Survivor Pensions of Daughters of Military Personnel and Educational Choices in Brazil

Daniel Gama e Colombo and Jorge Martinez-Vazquez ()
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Daniel Gama e Colombo: Institute of Applied Economic Research (IPEA), Brazil

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: This paper investigates whether the expectation of a future lifetime survivor pension affects the educational choices of individuals and their families, focusing on the case of military daughters in Brazil. To assess this effect, we exploit a policy reform in the early 2000s that eliminated permanent pensions. The empirical analysis is based on microdata on daughters of different cohorts, and the impact of the permanent pensions is estimated using the average treatment effect (ATE) and the inverse-probability-weighted regression-adjusted estimator (IPWRA). The findings indicate that eligibility for lifetime pensions induced a 12.4-percent reduction in the average number of years of education, thus supporting the argument that generous social security benefits can act as a disincentive to education. The findings have relevant implications for the design of survivor pensions and other social security benefits, while also highlighting an inefficiency stemming from the Brazilian pension system.

Pages: 45 pages
Date: 2024-04
New Economics Papers: this item is included in nep-age and nep-lam
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper2403

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