The Effects of a noncontributory pension program on labor force participation: The case of 70 y Más in Mexico Article

Juarez, L, Pfutze, T. (2015). The Effects of a noncontributory pension program on labor force participation: The case of 70 y Más in Mexico . ECONOMIC DEVELOPMENT AND CULTURAL CHANGE, 63(4), 685-713. 10.1086/681668

cited authors

  • Juarez, L; Pfutze, T

authors

abstract

  • Funds come from employer and employee wage-based contributions, which are deposited into individual savings accounts. In addition, as in other developing countries, evasion is widespread even among eligible workers, and transitions between covered and uncovered employment lower the likelihood of receiving a pension, which depends on the accumulated years in formal employment. The program started in 2007 by covering about a million age-eligible individuals living in localities with up to 2,500 inhabitants, and it expanded rapidly afterward. In January 2008, the program was extended to localities with up to 20,000 inhabitants, and the number of beneficiaries grew to 1.9 million. The population threshold of 30,000 inhabitants is large enough to identify almost all localities around the discontinuity in the microdata.

publication date

  • July 1, 2015

Digital Object Identifier (DOI)

start page

  • 685

end page

  • 713

volume

  • 63

issue

  • 4