Implicit redistribution within Argentina’s social security system: a micro-simulation exercise

Pedro Moncarz

Latin American Economic Review, 2015, vol. 24, issue 1, 1-35

Abstract: The intra-generational redistribution in the Argentinean pension program is assessed in a lifetime basis. Using household surveys, the lifetime flows of labor income, contributions and retirement benefits are simulated. Then, the expected present values of pre- and post-social security labor income are computed. The results show that the pay-as-you-go defined-benefit system appears to be regressive, especially for women in the private sector. The results are robust to the use of alternative discount rates and different definitions of pre- and post-social security wealth. When income from informal jobs is taken into account, the system becomes slightly progressive. A weak enforcement of the law makes the system less regressive. Finally, in a counterfactual scenario in which there is no informal labor, the system becomes almost neutral, even showing a small level of progressivity. Copyright The Author(s) 2015

Keywords: Social security; Redistribution; Micro-simulations; Argentina; H50; H55 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s40503-015-0016-8

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