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Penzijní reforma v Chile: aktuální vývoj plně fondového DC systému a analýza dopadů
[Chilean Pension System: Current Development of Fully Funded DC System and Its Impacts]

Author

Listed:
  • Petr Brabec
  • Karina Kubelková

Abstract

General elections in Chile in the autumn of 2013 have unleashed a discussion about the shortcomings of the Chilean pension system and the necessary changes. Radical solutions contains various forms of return of the PAYG system. The paper deals with the preparation and the main implication of the pension reform in 1981 which led to the transition from the PAYG system to the capital system. Thanks to the reconstruction of the time series from the 70s and 80s of the 20th century using the latest data from 2013 and own calculations the article confirmed that the transition meant a noticeable increase in pensions for everybody included in the system. This outcome is driven mainly by the lower tax burden, generated savings and positive impact, particularly on the country's GDP and government budget. The paper also summarize the available knowledge about the pension reform in Chile in the Czech language.

Suggested Citation

  • Petr Brabec & Karina Kubelková, 2015. "Penzijní reforma v Chile: aktuální vývoj plně fondového DC systému a analýza dopadů [Chilean Pension System: Current Development of Fully Funded DC System and Its Impacts]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(4), pages 517-533.
    • Handle: RePEc:prg:jnlpol:v:2015:y:2015:i:4:id:1033:p:517-533
    DOI: 10.18267/j.polek.1033
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    References listed on IDEAS

    as
    1. Mehdi Ben Braham, 2007. "Structural Pension Reform: The Chilean Experience," NFI Working Papers 2007-WP-20, Indiana State University, Scott College of Business, Networks Financial Institute.
    2. Palacios, Robert & Rofman, Rafael, 2001. "Annuity markets and benefit design in multi-pillar pension schemes : experience and lessons from four Latin American countries," Social Protection Discussion Papers and Notes 23159, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    PAYG; pension reform; Chile; capital system; 1981; AFP;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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