Heterogeneous Effect of a Non-contributory Pension. Evidence from Bolivia

Miguel Angel Borrella-Mas, Mariano Bosch and Marcello Sartarelli
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Miguel Angel Borrella-Mas: Universidad de Navarra.

No 2019-35, Documentos de Trabajo del ICAE from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico

Abstract: We test whether eligibility for the Renta Dignidad social pen- sion mitigates old-age poverty and induces (in)direct behavioural responses by using a regression discontinuity design as the age cut- off determining eligibility is set at 60. We find that, first, neither poverty nor consumption or labour supply are affected by spouses’ eligibility and, second, the probability of co-residing grandchildren in households with both spouses eligible is higher. We contribute to the literature by showing how the role of gender in decisions with an intergenerational component can help rationalising apparent limita- tions of the pension in fighting poverty in the short-run.

Keywords: Consumption; Gender; Household composition; Labour supply; Poverty; Regression discontinuity; Renta Dignidad; Social pension. (search for similar items in EconPapers)
JEL-codes: D13 H2 J22 J26 (search for similar items in EconPapers)
Pages: 74 pages
Date: 2019-11
New Economics Papers: this item is included in nep-age and nep-lma
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