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Characteristics of and determinants of the density of contributions in a Private Social Security System

Alberto Arenas de Mesa, Jere Behrman and David Bravo
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Alberto Arenas de Mesa: Dirección de Presupuestos, Ministerio de Hacienda, Chile.

Working Papers from University of Michigan, Michigan Retirement Research Center

Abstract: This paper investigates previously unresearched issues pertaining to the well-known Chilean innovations in Social Security. Previous empirical studies of the Chilean system used aggregate and macro data, without attention to individual heterogeneity. This study uses new household survey data, linked with Social Security records for over 20 years, to analyze selected reform issues related to social security coverage and the density and continuity of contributions to the social security system. The results lead to a better understanding of the participation determinants and the distributional aspects of the Chilean system, lay the groundwork for policy changes, and illuminate implications of the system reforms for other countries.

Date: 2001-03
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