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Contributions to social security in Argentina, Chile and Uruguay: Densities, transitions and duration

Author

Listed:
  • Alvaro Foteza

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República, Montevideo, Uruguay)

  • Ignacio Apella

    (Center for the Study of State and Society (CEDES), Argentina)

  • Eduardo Fajnzylber

    (School of Government of the Universidad Adolfo Ibáñez, Chile)

  • Carlos Grushka

    (Superintendency of AFJP, Argentina)

  • Ianina Rossi

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República, Uruguay)

  • Graciela Sanromán

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República, Uruguay)

Abstract

Pension programs in Latin America have low coverage. We use large panel databases coming from administrative records of Argentina, Chile and Uruguay to characterize the histories of contribution of the population. We compute three indicators: density of contribution, transition rates and duration of the spells of contribution and no contribution. The picture that emerges is worrisome. The density of contributions is low on average and pretty heterogeneous across the population. The spells of contribution are short and interruptions are frequent. Transition rates are higher at early ages and tend to decline later in life, indicating high turnover among young individuals.

Suggested Citation

  • Alvaro Foteza & Ignacio Apella & Eduardo Fajnzylber & Carlos Grushka & Ianina Rossi & Graciela Sanromán, 2011. "Contributions to social security in Argentina, Chile and Uruguay: Densities, transitions and duration," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 127-163, January-D.
    • Handle: RePEc:akh:journl:578
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    References listed on IDEAS

    as
    1. Rafael Rofman & Leonardo Lucchetti & Guzmán Ourens, 2010. "Pension Systems in Latin America: Concepts and Measurements of Coverage," Documentos de Trabajo (working papers) 0510, Department of Economics - dECON.
    2. Richard Hinz & Robert Holzmann, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336.
    3. Rofman, Rafael & Fajnzylber, Eduardo & Herrera, German, 2008. "Reforming the pension reforms : the recent initiatives and actions on pensions in Argentina and Chile," Social Protection Discussion Papers and Notes 90346, The World Bank.
    4. Francisco Pino & Solange Berstein & Guillermo Larraín, 2006. "Chilean Pension Reform: Coverage Facts and Policy Alternatives," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 227-279, January.
    5. Noriyuki Takayama & Robert Holzmann & David A. Robalino, 2009. "Closing the Coverage Gap : The Role of Social Pensions and Other Retirement Income Transfers," World Bank Publications - Books, The World Bank Group, number 2651.
    6. David Bravo & Jere R. Behrman & Olivia s. Mitchell & Petra E. Todd. & Javiera Vásquez, 2008. "Encuesta de protección social 2006: Presentación general y principales resultados," Working Papers wp273, University of Chile, Department of Economics.
    7. Forteza, Alvaro & Apella, Ignacio & Fajnzylber, Eduardo & Grushka, Carlos & Rossi, Ianina & Sanroman, Graciela, 2009. "Work histories and pension entitlements in Argentina, Chile and Uruguay," Social Protection Discussion Papers and Notes 52446, The World Bank.
    8. Marisa Bucheli & Alvaro Forteza & Ianina Rossi, 2007. "Work history and the access to contributory pensions. The case of Uruguay," Documentos de Trabajo (working papers) 1607, Department of Economics - dECON.
    9. Arenas de Mesa, Alberto & Llanes, María Claudia & Miranda Bravo, Fidel, 2006. "Protección social efectiva, calidad de la cobertura, equidad y efectos distributivos del sistema de pensiones en Chile," Financiamiento para el Desarrollo 5148, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. Alvaro Forteza, 2015. "Are social security programs progressive?," IZA World of Labor, Institute of Labor Economics (IZA), pages 172-172, July.
    2. Bertranou, Fabio & Cetrángolo, Oscar & Grushka, Oscar & Casanova, Luis, 2012. "Beyond the privatization and re-nationalisation of the Argentine pension system: coverage, fragmentation, and sustainability," MPRA Paper 44245, University Library of Munich, Germany.
    3. Ianina Rossi, 2018. "Systematic Determinants of Pensions in Latin America," Documentos de Trabajo (working papers) 0818, Department of Economics - dECON.

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    More about this item

    Keywords

    Density of contributions; pensions; work history.;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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