Gender Pension Gaps in a Private Retirement Accounts System : A Dynamic Model of Household Labor Supply and Savings
This paper develops and estimates a dynamic model of individuals' and couples' labor supply, savings, and retirement decisions to analyze how the design of a privatized pension system affects gender pension gaps. Chile has one of the long...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/455991594914622047/Gender-Pension-Gaps-in-a-Private-Retirement-Accounts-System-A-Dynamic-Model-of-Household-Labor-Supply-and-Savings http://hdl.handle.net/10986/34168 |
| Summary: | This paper develops and estimates a
dynamic model of individuals' and couples' labor
supply, savings, and retirement decisions to analyze how the
design of a privatized pension system affects gender pension
gaps. Chile has one of the longest running nationwide
private retirements accounts systems in the world, operating
since 1980. It has served as a model for many countries and
was reformed in 2008 to alleviate old- age poverty and
reduce gender pension gaps. The paper estimates the dynamic
model using pre-reform data and compares the model's
short-term predictions with available evidence on the
reform's causal impacts. The analysis finds that
household structure is an important determinant of the
behavioral and distributional impacts of the reform. The
paper evaluates how actual and counterfactual changes in the
pension system design affect men's and women's
economic decisions, pension receipts, and program costs over
a longer time horizon. Three design features significantly
reduce gender pension gaps: expanding minimum pension
benefit eligibility, providing a per-child pension bonus,
and increasing women's retirement age to be equal to men's. |
|---|