Another Brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being
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.
| Main Author: | |
|---|---|
| Other Authors: | |
| Language: | English |
| Published: |
Inter-American Development Bank
|
| Subjects: | Mental Health, Impact Evaluation, Poverty, Pension, Household Income, Non Contributory Pension, I1 - Health, I3 - Welfare, Well-Being, and Poverty, H3 - Fiscal Policies and Behavior of Economic Agents, H4 - Publicly Provided Goods, Poverty;Non-contributory pensions;Mental health;Well-being, |
| Online Access: | http://dx.doi.org/10.18235/0003082 https://publications.iadb.org/en/another-brick-wall-effects-non-contributory-pensions-material-and-subjective-well-being |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|