Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program

One of the primary motivations behind the establishment of noncontributory pension programs is to allow beneficiaries to retire from the labor force. Yet, as with other unconditional cash transfer schemes, their aggregate effects may be more comple...

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Main Authors:	Pfutze, Tobias, Rodriguez Castelan, Carlos
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	LIVING STANDARDS PROGRAM BENEFICIARIES JOBS EMPLOYMENT RISKS HOUSEHOLD SURVEY RIGHTS DURABLE GOODS MOTIVATION PRODUCTION RETIREMENT PREVIOUS SECTION STOCK WAGE DIFFERENTIAL MINIMUM WAGE INCOME INTEREST DUMMY VARIABLES SERVICE SECTOR AGRICULTURAL PRODUCTION EMPLOYMENT OPPORTUNITIES PROGRAM DESIGN EXCHANGE TOTAL LABOR FORCE INFORMATION LABOR FORCE LIQUIDITY DEVELOPING COUNTRIES HEALTH INSURANCE EFFECTS INCENTIVES SOCIAL PROTECTION MECHANISMS POLICY DISCUSSIONS WARRANTS CASH TRANSFER LABOR FORCE PARTICIPATION DUMMY VARIABLE LONG-TERM INVESTMENT BENEFICIARIES INTERNATIONAL BANK PENSION INSTRUMENTS PUBLIC HEALTH ECONOMIC ANALYSIS PROTECTION MECHANISMS LABOR MARKET UNINTENDED CONSEQUENCES BENEFICIARY DEVELOPMENT ECONOMICS DAUNTING TASK EDUCATIONAL ATTAINMENT DEVELOPMENT EFFECTIVENESS OLD-AGE PENSIONS WORKER INCOME INEQUALITY EXCHANGE RATES LIQUIDITY CONSTRAINTS MIGRATION TRANSFERS MARKETS HOUSEHOLD INCOME ORGANIZATIONS PUBLIC FINANCE CONSUMPTION EXPENDITURE ELDERLY POPULATION SOCIAL SECURITY STANDARDS LABOR CASH TRANSFERS MORTALITY PREVIOUS RESULTS FINANCE ELDERLY BANK POLICY FEMALE LABOR NUTRITIONAL STATUS PROGRESS EXPENDITURE EQUITY MIGRANT GOOD CREDIT CONSTRAINTS TRANSPORTATION WORKERS WAGES WOMAN POLICY RESEARCH WORKING PAPER VALUE PENSIONS PURCHASING POWER OCCUPATIONS OCCUPATION FIRM PERFORMANCE LABOR MARKET OUTCOMES PRIVATE SECTOR SHARES NUTRITION MARKET PROBIT REGRESSIONS ELDERLY PEOPLE ECONOMICS POLICY PRIVATE TRANSFERS MANAGEMENT INSURANCE ECONOMIC DEVELOPMENT GOODS THEORY SECURITY DURABLE INVESTMENT RISK SHARE RURAL AREAS POVERTY FEMALE LABOR FORCE SUPPLY EMPLOYEE HOUSEHOLD CONSUMPTION POPULATION LABOR SUPPLY PURCHASING POWER PARITY INVESTMENTS LIVING CONDITIONS CHECK INFORMAL EMPLOYMENT POLICY RESEARCH INCOME REDISTRIBUTION INCOME STREAM PRIMARY EDUCATION LABOUR SUPPLY EXCHANGE RATE INSTRUMENT WOMEN LABOUR REMITTANCES LABOR MARKETS OUTCOMES FINANCIAL CONSTRAINTS DEVELOPMENT BANK HUMAN DEVELOPMENT DEVELOPMENT POLICY EXCLUSION RESTRICTION INVESTING
Online Access:	http://documents.worldbank.org/curated/en/2015/12/25672297/can-small-social-pension-promote-labor-force-participation-evidence-colombia-mayor-program http://hdl.handle.net/10986/23480

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spelling	okr-10986-234802021-04-23T14:04:15Z Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program Pfutze, Tobias Rodriguez Castelan, Carlos LIVING STANDARDS PROGRAM BENEFICIARIES JOBS EMPLOYMENT RISKS HOUSEHOLD SURVEY RIGHTS DURABLE GOODS MOTIVATION PRODUCTION RETIREMENT PREVIOUS SECTION STOCK WAGE DIFFERENTIAL MINIMUM WAGE INCOME INTEREST DUMMY VARIABLES SERVICE SECTOR AGRICULTURAL PRODUCTION EMPLOYMENT OPPORTUNITIES PROGRAM DESIGN EXCHANGE TOTAL LABOR FORCE INFORMATION LABOR FORCE LIQUIDITY DEVELOPING COUNTRIES HEALTH INSURANCE EFFECTS INCENTIVES SOCIAL PROTECTION MECHANISMS POLICY DISCUSSIONS WARRANTS CASH TRANSFER LABOR FORCE PARTICIPATION DUMMY VARIABLE LONG-TERM INVESTMENT BENEFICIARIES INTERNATIONAL BANK PENSION INSTRUMENTS PUBLIC HEALTH ECONOMIC ANALYSIS PROTECTION MECHANISMS LABOR MARKET UNINTENDED CONSEQUENCES BENEFICIARY DEVELOPMENT ECONOMICS DAUNTING TASK EDUCATIONAL ATTAINMENT DEVELOPMENT EFFECTIVENESS OLD-AGE PENSIONS WORKER INCOME INEQUALITY EXCHANGE RATES LIQUIDITY CONSTRAINTS MIGRATION TRANSFERS MARKETS HOUSEHOLD INCOME ORGANIZATIONS PUBLIC FINANCE CONSUMPTION EXPENDITURE ELDERLY POPULATION SOCIAL SECURITY STANDARDS LABOR CASH TRANSFERS MORTALITY PREVIOUS RESULTS FINANCE ELDERLY BANK POLICY FEMALE LABOR NUTRITIONAL STATUS PROGRESS EXPENDITURE EQUITY MIGRANT GOOD CREDIT CONSTRAINTS TRANSPORTATION WORKERS WAGES WOMAN POLICY RESEARCH WORKING PAPER VALUE PENSIONS PURCHASING POWER OCCUPATIONS OCCUPATION FIRM PERFORMANCE LABOR MARKET OUTCOMES PRIVATE SECTOR SHARES NUTRITION MARKET PROBIT REGRESSIONS ELDERLY PEOPLE ECONOMICS POLICY PRIVATE TRANSFERS MANAGEMENT INSURANCE ECONOMIC DEVELOPMENT GOODS THEORY SECURITY DURABLE INVESTMENT RISK SHARE RURAL AREAS POVERTY FEMALE LABOR FORCE SUPPLY EMPLOYEE HOUSEHOLD CONSUMPTION POPULATION LABOR SUPPLY PURCHASING POWER PARITY INVESTMENTS LIVING CONDITIONS CHECK INFORMAL EMPLOYMENT POLICY RESEARCH INCOME REDISTRIBUTION INCOME STREAM PRIMARY EDUCATION LABOUR SUPPLY EXCHANGE RATE INSTRUMENT WOMEN LABOUR REMITTANCES LABOR MARKETS OUTCOMES FINANCIAL CONSTRAINTS DEVELOPMENT BANK HUMAN DEVELOPMENT DEVELOPMENT POLICY EXCLUSION RESTRICTION INVESTING One of the primary motivations behind the establishment of noncontributory pension programs is to allow beneficiaries to retire from the labor force. Yet, as with other unconditional cash transfer schemes, their aggregate effects may be more complex. Using panel data and instrumental variable techniques, this paper shows that the effect of one such program, Colombia Mayor, has been to raise the labor force participation of relatively younger male beneficiaries. This increase occurred precisely in the occupations with characteristics that are likely to require some up-front investment. The paper concludes that the transfer effectively loosened the liquidity constraints to remaining in these occupations. However, no such effect is found among women or older beneficiaries. 2015-12-22T17:00:41Z 2015-12-22T17:00:41Z 2015-12 Working Paper http://documents.worldbank.org/curated/en/2015/12/25672297/can-small-social-pension-promote-labor-force-participation-evidence-colombia-mayor-program http://hdl.handle.net/10986/23480 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Colombia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	LIVING STANDARDS PROGRAM BENEFICIARIES JOBS EMPLOYMENT RISKS HOUSEHOLD SURVEY RIGHTS DURABLE GOODS MOTIVATION PRODUCTION RETIREMENT PREVIOUS SECTION STOCK WAGE DIFFERENTIAL MINIMUM WAGE INCOME INTEREST DUMMY VARIABLES SERVICE SECTOR AGRICULTURAL PRODUCTION EMPLOYMENT OPPORTUNITIES PROGRAM DESIGN EXCHANGE TOTAL LABOR FORCE INFORMATION LABOR FORCE LIQUIDITY DEVELOPING COUNTRIES HEALTH INSURANCE EFFECTS INCENTIVES SOCIAL PROTECTION MECHANISMS POLICY DISCUSSIONS WARRANTS CASH TRANSFER LABOR FORCE PARTICIPATION DUMMY VARIABLE LONG-TERM INVESTMENT BENEFICIARIES INTERNATIONAL BANK PENSION INSTRUMENTS PUBLIC HEALTH ECONOMIC ANALYSIS PROTECTION MECHANISMS LABOR MARKET UNINTENDED CONSEQUENCES BENEFICIARY DEVELOPMENT ECONOMICS DAUNTING TASK EDUCATIONAL ATTAINMENT DEVELOPMENT EFFECTIVENESS OLD-AGE PENSIONS WORKER INCOME INEQUALITY EXCHANGE RATES LIQUIDITY CONSTRAINTS MIGRATION TRANSFERS MARKETS HOUSEHOLD INCOME ORGANIZATIONS PUBLIC FINANCE CONSUMPTION EXPENDITURE ELDERLY POPULATION SOCIAL SECURITY STANDARDS LABOR CASH TRANSFERS MORTALITY PREVIOUS RESULTS FINANCE ELDERLY BANK POLICY FEMALE LABOR NUTRITIONAL STATUS PROGRESS EXPENDITURE EQUITY MIGRANT GOOD CREDIT CONSTRAINTS TRANSPORTATION WORKERS WAGES WOMAN POLICY RESEARCH WORKING PAPER VALUE PENSIONS PURCHASING POWER OCCUPATIONS OCCUPATION FIRM PERFORMANCE LABOR MARKET OUTCOMES PRIVATE SECTOR SHARES NUTRITION MARKET PROBIT REGRESSIONS ELDERLY PEOPLE ECONOMICS POLICY PRIVATE TRANSFERS MANAGEMENT INSURANCE ECONOMIC DEVELOPMENT GOODS THEORY SECURITY DURABLE INVESTMENT RISK SHARE RURAL AREAS POVERTY FEMALE LABOR FORCE SUPPLY EMPLOYEE HOUSEHOLD CONSUMPTION POPULATION LABOR SUPPLY PURCHASING POWER PARITY INVESTMENTS LIVING CONDITIONS CHECK INFORMAL EMPLOYMENT POLICY RESEARCH INCOME REDISTRIBUTION INCOME STREAM PRIMARY EDUCATION LABOUR SUPPLY EXCHANGE RATE INSTRUMENT WOMEN LABOUR REMITTANCES LABOR MARKETS OUTCOMES FINANCIAL CONSTRAINTS DEVELOPMENT BANK HUMAN DEVELOPMENT DEVELOPMENT POLICY EXCLUSION RESTRICTION INVESTING
spellingShingle	LIVING STANDARDS PROGRAM BENEFICIARIES JOBS EMPLOYMENT RISKS HOUSEHOLD SURVEY RIGHTS DURABLE GOODS MOTIVATION PRODUCTION RETIREMENT PREVIOUS SECTION STOCK WAGE DIFFERENTIAL MINIMUM WAGE INCOME INTEREST DUMMY VARIABLES SERVICE SECTOR AGRICULTURAL PRODUCTION EMPLOYMENT OPPORTUNITIES PROGRAM DESIGN EXCHANGE TOTAL LABOR FORCE INFORMATION LABOR FORCE LIQUIDITY DEVELOPING COUNTRIES HEALTH INSURANCE EFFECTS INCENTIVES SOCIAL PROTECTION MECHANISMS POLICY DISCUSSIONS WARRANTS CASH TRANSFER LABOR FORCE PARTICIPATION DUMMY VARIABLE LONG-TERM INVESTMENT BENEFICIARIES INTERNATIONAL BANK PENSION INSTRUMENTS PUBLIC HEALTH ECONOMIC ANALYSIS PROTECTION MECHANISMS LABOR MARKET UNINTENDED CONSEQUENCES BENEFICIARY DEVELOPMENT ECONOMICS DAUNTING TASK EDUCATIONAL ATTAINMENT DEVELOPMENT EFFECTIVENESS OLD-AGE PENSIONS WORKER INCOME INEQUALITY EXCHANGE RATES LIQUIDITY CONSTRAINTS MIGRATION TRANSFERS MARKETS HOUSEHOLD INCOME ORGANIZATIONS PUBLIC FINANCE CONSUMPTION EXPENDITURE ELDERLY POPULATION SOCIAL SECURITY STANDARDS LABOR CASH TRANSFERS MORTALITY PREVIOUS RESULTS FINANCE ELDERLY BANK POLICY FEMALE LABOR NUTRITIONAL STATUS PROGRESS EXPENDITURE EQUITY MIGRANT GOOD CREDIT CONSTRAINTS TRANSPORTATION WORKERS WAGES WOMAN POLICY RESEARCH WORKING PAPER VALUE PENSIONS PURCHASING POWER OCCUPATIONS OCCUPATION FIRM PERFORMANCE LABOR MARKET OUTCOMES PRIVATE SECTOR SHARES NUTRITION MARKET PROBIT REGRESSIONS ELDERLY PEOPLE ECONOMICS POLICY PRIVATE TRANSFERS MANAGEMENT INSURANCE ECONOMIC DEVELOPMENT GOODS THEORY SECURITY DURABLE INVESTMENT RISK SHARE RURAL AREAS POVERTY FEMALE LABOR FORCE SUPPLY EMPLOYEE HOUSEHOLD CONSUMPTION POPULATION LABOR SUPPLY PURCHASING POWER PARITY INVESTMENTS LIVING CONDITIONS CHECK INFORMAL EMPLOYMENT POLICY RESEARCH INCOME REDISTRIBUTION INCOME STREAM PRIMARY EDUCATION LABOUR SUPPLY EXCHANGE RATE INSTRUMENT WOMEN LABOUR REMITTANCES LABOR MARKETS OUTCOMES FINANCIAL CONSTRAINTS DEVELOPMENT BANK HUMAN DEVELOPMENT DEVELOPMENT POLICY EXCLUSION RESTRICTION INVESTING Pfutze, Tobias Rodriguez Castelan, Carlos Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
geographic_facet	Colombia
description	One of the primary motivations behind the establishment of noncontributory pension programs is to allow beneficiaries to retire from the labor force. Yet, as with other unconditional cash transfer schemes, their aggregate effects may be more complex. Using panel data and instrumental variable techniques, this paper shows that the effect of one such program, Colombia Mayor, has been to raise the labor force participation of relatively younger male beneficiaries. This increase occurred precisely in the occupations with characteristics that are likely to require some up-front investment. The paper concludes that the transfer effectively loosened the liquidity constraints to remaining in these occupations. However, no such effect is found among women or older beneficiaries.
format	Working Paper
author	Pfutze, Tobias Rodriguez Castelan, Carlos
author_facet	Pfutze, Tobias Rodriguez Castelan, Carlos
author_sort	Pfutze, Tobias
title	Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
title_short	Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
title_full	Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
title_fullStr	Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
title_full_unstemmed	Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program
title_sort	can a small social pension promote labor force participation? : evidence from the colombia mayor program
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/12/25672297/can-small-social-pension-promote-labor-force-participation-evidence-colombia-mayor-program http://hdl.handle.net/10986/23480
_version_	1764453960944451584

Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program

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