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Designing cash transfer programs for an older population: The Mexican case

Emma Aguila (), Arie Kapteyn () and Caroline Tassot

The Journal of the Economics of Ageing, 2017, vol. 9, issue C, 111-121

Abstract: Aging populations and the prevalence of poverty in old age have led to the introduction of noncontributory pensions in many countries. We consider a number of alternative targeting approaches and simulate their effects in an empirical application in the State of Yucatan, Mexico. We compare the approaches with respect to leakage, under-coverage, and their effects on government budgets. We are also able to compare the simulated effects of one alternative with the observed effect of a recently introduced demogrant and find that the simulation is a close approximation of the empirical outcomes. We discuss issues of implementation and political feasibility.

Keywords: Targeting; Cash transfer programs; Noncontributory pension programs; Older population; Mexico (search for similar items in EconPapers)
JEL-codes: I32 I38 J14 (search for similar items in EconPapers)
Date: 2017
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The Journal of the Economics of Ageing is currently edited by D.E. Bloom, A. Sousa-Poza and U. Sunde

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Handle: RePEc:eee:joecag:v:9:y:2017:i:c:p:111-121