Download This PaperAnother Brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being
41 Pages Posted: 12 Jan 2021 Last revised: 16 Nov 2024
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Another brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being
Date Written: January 2021
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.
Suggested Citation: Suggested Citation
Rosangela Bando (Contact Author)
Inter-American Development Bank ( email )
1300 New York Avenue NW
Washington, DC 20577
United States
202 623 2126 (Phone)
Paul J. Gertler
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
510-642-1418 (Phone)
510-642-4700 (Fax)