THEEX-ANTEEFFECTS OF NON-CONTRIBUTORY PENSIONS IN COLOMBIA AND PERU

Javier Olivera · Blanca Zuluaga

18 citations0/0 files storedJournal of International Development

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Financial Literacy, Pension, Retirement Analysis Income, Poverty, and Inequality Poverty, Education, and Child Welfare

Abstract

This paper studies the ex-ante effects of the implementation of a non-contributory pension (NCP) programme in Colombia and Peru. Relying on household survey data, we simulate the transfer's potential impact on poverty, inequality, fiscal cost and the probability of affiliation to contributory pensions. Our results show that an NCP reduces poverty and inequality among the elderly, particularly in rural areas, at an arguably limited fiscal cost. Regarding behavioural effects, there is not a large impact on the probability of affiliation to contributory pensions when the programme is targeted to the poor, with the exception of Peruvian women. Finally, we also compute some potential effects on the recipient's labour supply. Copyright © 2014 John Wiley & Sons, Ltd.

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2003Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa 2000Child Health and Household Resources in South Africa: Evidence from the Old Age Pension Program 2005Child labor and schooling responses to anticipated income in South Africa 2008Social security and Retirement: An International Comparison n.d.Labor Supply Responses to Large Social Transfers: Longitudinal Evidence from South Africa 2003Public Policy and Extended Families: Evidence from Pensions in South Africa 1996Real freedom for all: what (if anything) can justify capitalism?2004Rearranging the Family? Income Support and Elderly Living Arrangements in a Low Income Country

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