Working Paper: NBER ID: w28318
Authors: Rosangela Bando; Sebastian Galiani; Paul Gertler
Abstract: Public expenditures on non-contributory pensions are equivalent to at least 1 percent of GDP in several countries in Latin America and is expected to increase. We explore the effect of non-contributory pensions on the well-being of the beneficiary population by studying the Pensiones Alimentarias program established by law in Paraguay, which targets older adults living in poverty. Households with a beneficiary increased their level of consumption by 44 percent. The program improved subjective well-being in 0.48 standard deviations. These effects are consistent with the findings of Bando, Galiani and Gertler (2020) and Galiani, Gertler and Bando (2016) in their studies on the non-contributory pension schemes in Peru and Mexico. Thus, we conclude that the effects of non-contributory pensions on well-being in Paraguay are comparable to those found for Peru and Mexico and add to the construction of external validity.
Keywords: No keywords provided
JEL Codes: I18; I3; I31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| pensiones alimentarias (J32) | household consumption (D10) |
| pensiones alimentarias (J32) | subjective wellbeing (I31) |
| pensiones alimentarias (J32) | paid work by older adults (J14) |
| subjective wellbeing (I31) | depression scores (C29) |
| subjective wellbeing (I31) | perceived health (I14) |
| pensiones alimentarias (J32) | transfers received from outside household (F24) |
| pensiones alimentarias (J32) | transfers to others outside household (G59) |