As part of the pension reform recently approved in Chile, the government introduced a centralized auction mechanism to provide the Disability and Survivors (D&S) Insurance that covers recent contributors among the more than 8 million participants in the mandatory private pension system. This paper is intended as a case study presenting the main distortions found in the decentralized operation of...

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This paper studies the relation between institutional investors and capital market development by analyzing unique data on monthly asset-level portfolio allocations of Chilean pension funds between 1995 and 2005. The results depict pension funds as large and important institutional investors that tend to hold a large amount of bank deposits, government paper, and short-term assets; buy and hold...

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This study examines the determinants of job-finding rates of unemployment benefit recipients under the Chilean program. This is a unique, innovative program that combines social insurance through a solidarity fund (SF) with self-insurance in the form of unemployment insurance savings accounts (UISAs) - so as to mitigate the moral hazard problem of traditional unemployment insurance programs. Our...

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Emerging economies have tried to promote long-term debt because it reduces maturity mismatches and the probability of crises. This paper uses unique evidence from the leading case of Chile to study to what extent domestic institutional investors hold longterm instruments. We compare monthly asset-level portfolios of Chilean institutional investors (mutual funds, pension funds, and insurance...

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Este artículo analiza el sistema de multifondos para el caso de Chile, describiendo su evolución desde su creación, en lo que respecta a inversiones, la elección de tipo de fondo por parte de los afiliados, y su composición por tramos de edad. Se describen los aspectos más relevantes de la normativa vigente y se analiza el desempeño de los multifondos durante la crisis financiera. Respecto a este...

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En un sistema de capitalización individual uno de los principales riesgos que se enfrentan se refiere al de inversión de los fondos. En este contexto, se analiza el sustento de optar por estrategias de inversión de ciclo de vida como mecanismo mitigador del riesgo de las inversiones. Sobre esta base se analiza la importancia de la opción por omisión a la luz del comportamiento económico de los...

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In 1981 Chile was the first country in the world to privitise its pension system moving from a traditional unfunded pay-as-you-go scheme (PAYG), where benefits are defined ex-ante by a final salary formula, to a Defined Contributions (DC) scheme where each individual's benefit depends entirely on his own pension savings. Individuals in the labour market at the time of the reform were given the...

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This article exploits the wide variation in the incentives individuals face towards formal work introduced by the Chilean pension reform of the early 80s. Through a non-lineal random effects dynamic model that allows for state dependence and unobserved heterogeneity we estimate the effect of pension system design on individuals' labour market formality decisions. Results indicate that individuals...

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Este documento intenta caracterizar el comportamiento de uso de los beneficios del Seguro de Cesantía Chileno. A partir de datos administrativos de este programa se observa que sólo el 35% de los individuos que, siendo elegibles para beneficios y con una pausa de al menos un mes sin cotizar, solicita alguno de los beneficios que el Seguro contempla. Las explicaciones detrás de este fenómeno se...

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Este trabajo hace un análisis de las características que definen la elección individual de modalidad de pensión para los jubilados en el sistema previsional chileno. Se utilizan datos de la Encuesta de Protección Social 2009 y datos administrativos de la Superintendencia de Pensiones para generar una muestra representativa de jubilados con sus características individuales. En particular, se evalúa...

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