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Programas de Pensiones No Contributivas y su Viabilidad Financiera El Caso de México

Author

Listed:
  • Emma Aguila
  • Nelly Josefina Mejia Gonzalez
  • Francisco Perez-Arce
  • Alfonso Rivera Illingworth

Abstract

This paper analyzes the financial sustainability of the non-contributory pension program for older persons in Mexico. The expansion of the program, with the aim of covering a larger number of localities and beneficiaries, focuses on diminishing the vulnerability of the older population. However, this expansion represents a challenge in terms of the fiscal cost of the program. Using population projections for the next decades, it calculates different scenarios to determine the costs of the program. It also estimates the amount of population without social security coverage, and the costs of providing a non-contributory pension in the next decades. The results indicate large increases in the cost of the program, in the short, medium and long terms.

Suggested Citation

  • Emma Aguila & Nelly Josefina Mejia Gonzalez & Francisco Perez-Arce & Alfonso Rivera Illingworth, 2013. "Programas de Pensiones No Contributivas y su Viabilidad Financiera El Caso de México," Working Papers WR-999, RAND Corporation.
    • Handle: RePEc:ran:wpaper:wr-999
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    References listed on IDEAS

    as
    1. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    2. Willmore, Larry, 2007. "Universal Pensions for Developing Countries," World Development, Elsevier, vol. 35(1), pages 24-51, January.
    3. Santiago Levy & Norbert Schady, 2013. "Latin America's Social Policy Challenge: Education, Social Insurance, Redistribution," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 193-218, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Galiani, Sebastian & Gertler, Paul & Bando, Rosangela, 2016. "Non-contributory pensions," Labour Economics, Elsevier, vol. 38(C), pages 47-58.
    2. Rosangela Bando & Sebastian Galiani & Paul Gertler, 2020. "The Effects of Noncontributory Pensions on Material and Subjective Well-Being," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1233-1255.
    3. Bando, Rosangela & Galiani, Sebastian & Gertler, Paul, 2022. "Another brick on the wall: On the effects of non-contributory pensions on material and subjective well being," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 16-26.
    4. Clemente Ávila‐Parra & David Escamilla‐Guerrero & Oscar Gálvez‐Soriano, 2024. "Minimum eligibility age for social pensions and household poverty: Evidence from Mexico," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 175-196, January.

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    More about this item

    Keywords

    envejecimiento; pensiones no contributivas; retiro; adultos mayores; Mexico; aging; non-contributory pensions; retirement; older population; Mexico;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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