The ex-ante effects of non-contributory pensions in Colombia and Peru

Javier Olivera and Blanca Zuluaga ()

No 201314, Working Papers from Geary Institute, University College Dublin

Abstract: The aim of this paper is to study the ex-ante effects of the implementation of a Non Contributory Pension (NCP) program in Colombia and Peru. Relying on household survey data, we simulate the potential impact of the transfer on poverty, inequality, fiscal cost, and the probability of affiliation to the contributory pension system. This last effect is the most direct behavioural effect one can expect from the implementation of a NCP scheme. For the behavioural response we estimate a Nested Logit Model. Our results show that a NCP in Colombia and Peru contributes to the reduction of poverty and inequality among the elderly, particularly in rural areas at affordable fiscal costs. Furthermore, there is not a large impact on the probability of affiliation to contributory pensions when the program is targeted to the poor (and extreme poor), with the exception of Peruvian women.

Keywords: non-contributory pensions; social security; old-age; poverty (search for similar items in EconPapers)
JEL-codes: D30 I32 I38 J14 J26 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-09-10
New Economics Papers: this item is included in nep-age, nep-dem and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201314.pdf First version, 2013 (application/pdf)

Related works:
Journal Article: THE EX‐ANTE EFFECTS OF NON‐CONTRIBUTORY PENSIONS IN COLOMBIA AND PERU (2014)
Working Paper: The ex-ante effects of non-contributory pensions in Colombia and Peru (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ucd:wpaper:201314

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