Working Paper: NBER ID: w12401
Authors: Alberto Arenas de Mesa; David Bravo; Jere R. Behrman; Olivia S. Mitchell; Petra E. Todd
Abstract: In 1980, Chile dramatically reformed its retirement system, replacing what was an old insolvent PAYGO program with a new structure that relies heavily on funded defined contribution individual accounts. In addition, eligibility and benefit requirements were standardized, and a safety net for old-age poverty was strengthened. Twenty-five years after this reform, the Chilean model is being re-assessed, in terms of coverage, contribution, investment, and retirement benefit outcomes. This paper introduces a recently-developed longitudinal survey of individual respondents in Chile, the Social Protection Survey (or Encuesta de Previsión Social, EPS), and illustrates some uses of this survey for microeconomic analysis of key aspects of the Chilean system.
Keywords: Pension Reform; Social Protection Survey; Chile; Retirement System; Financial Literacy
JEL Codes: G23; H55; J14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gender (J16) | participation levels (I24) |
| employment interruptions (J65) | participation levels (I24) |
| financial literacy (G53) | accuracy of reported account balances (E01) |
| knowledge gaps (I24) | retirement planning decisions (J26) |