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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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:9:y:2017:i:c:p:111-121

DOI: 10.1016/j.jeoa.2016.09.001

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