Strengthening the Scientific Foundation for Policymaking to Meet the Challenges of Aging in Latin America and the Caribbean Summary of a Workshop (2015) / Chapter Skim
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5 Labor Market Participation/Retirement
5 Labor Market Participation/Retirement
Pages 33-40
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From page 33... ...
Bravo explained that the origin of the EPS survey stemmed from a public policy question. In 1981, Chile underwent a major reform of its pension system, and an individual-capitalization system was established.
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From page 34... ...
Some of the major questions that the commission considered involved the density of effective contributions; the extent to which workers meet the essential requirements for pension receipt; perceptions of pension contributions as a type of tax; the impact of financial shocks on the labor market and social protection; the characteristics of independent workers and the self-employed (most of whom do not participate in the pension system) ; and the effect of chronic diseases or catastrophic diseases on the system contribution patterns.
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From page 35... ...
These are workers in noncompliant small firms and self-employed workers who choose not to contribute to the social security system. Upon retirement, these individuals may receive noncontributory pension benefits that are of smaller amounts than social security benefits; they also receive health care provided by the government.
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From page 36... ...
The third experiment began in 2010, also in Merida, and varied the proportion of treatment and control individuals within areal clusters such that researchers could conduct more in-depth analysis and identify potential spillover effects. The research teams, working with government entities in Yucatan, built two government programs, one to disburse the pension and another to evaluate the impact of the program (Aguila et al., 2014)
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From page 37... ...
One workshop participant suggested that it would be very useful to further investigate the interaction between employment and the noncontributory pension, particularly in light of what is known about the importance of work for individual identity, network formation and strengthening, and receipt of health benefits. Aguila agreed and mentioned that one next step is to analyze the type of work that individuals aged 70 and older are engaged in, most of which is in the informal sector and often of a sporadic nature.
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From page 38... ...
The first is that pensions with a defined benefit represent a burden that is impossible to pay as now structured. This is partly due to population aging and increased life expectancy, and less so to corruption within social security institutions.
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From page 39... ...
Countries must bear in mind that health care costs are going to grow exponentially, and may well be more expensive than pension costs. Ham Chande suggested more attention to econometric models and to use of the "demographic dividend" framework for understanding intergenerational transfers (Crespo et al., 2014)
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