Abstract
Chile started in 1924 a mandatory pension system organized around private and state-managed social-security institutions (SSIs) for particular groups of workers.1 Originally designed as fully-funded pension schemes, pension reserves were depleted over the years as a result of restrictive investment policies and low returns, unsustainable contribution-to-benefit ratios, and use of reserves to finance other benefits including health services, family allowances, and subsidized mortgage loans provided to some contributors. Heterogeneity of pension regimes, contributions and benefits, inter and intra-generational redistribution, and efficiency among SSIs was large, reflecting differences among participating groups in their political weight in securing special benefits provided by ad-hoc laws or administrative/budgetary decisions granted by the executive.
Keywords
Total Factor Productivity Pension Fund Pension System Total Factor Productivity Growth Pension Benefit
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Preview
Unable to display preview. Download preview PDF.
References
- Arrau, P. (1991): La Reforma Previsional Chilena y su Financiamiento durante la Transición, Colección Estudios CIEPLAN 32: 5–44.Google Scholar
- Arrau, P. and K. Schmidt-Hebbel (1993): Macroeconomic and Intergenerational Welfare Effects of a Transition from Pay-as-you-go to Fully Funded Pensions, manuscript, The World Bank, Washington, D.C.Google Scholar
- Arrau, P. and K. Schmidt-Hebbel (1994): Pension Systems and Reforms: Country Experiences and Research Issues, Revista de Análisis Económico 9 (1): 3–20.Google Scholar
- Auerbach, A. and L.J. Kotlikoff (1987): Dynamic Fiscal Policy. Cambridge University Press.Google Scholar
- Corsetti, G. and K. Schmidt-Hebbel (1997): Pension Reform and Growth, in S. Valdés-Prieto (editor): The Economics of Pensions: Principles, Policies, and International Experience, Cambridge University Press.Google Scholar
- Diamond, P. (1965): National Debt in a Neoclassical Growth Model, American Economic Review 55 (5): 1126–50.Google Scholar
- Diamond, P. and S. Valdés-Prieto (1994): Social Security Reforms, in B. Bosworth, R. Dornbusch, and R. Labán (editors): The Chilean Economy: Policy Lessons and Challenges, The Brookings Institution.Google Scholar
- Edwards, S. (1997): Chile: Radical Change Towards a Funded Pension System, manuscript, prepared for presentation at the Kiel Week Conference, June. ai]Feldstein, M. (1974): Social Security, Induced Retirement, and Aggregate Capital Accumulation, Journal of Political Economy 82: 905–26.Google Scholar
- Feldstein, M. (1977): Social Security and Private Savings: International Evidence in an Extended Life-Cycle Model, in M. Feldstein and R. Inman (editors): The Economics of Public Services, Macmillan.Google Scholar
- Feldstein, M. (1995): Social Security and Saving: New Time Series Evidence, NBER Working Paper 5054.Google Scholar
- Feldstein, M. (1996): The Missing Piece in Policy Analysis: Social Security Reform, American Economic Review 86 (2): 1–14Google Scholar
- Gemines Consultores (1999): AFPs: Evolución, Reesttructuración y Perspectivas, manuscript, Santiago, January.Google Scholar
- Holzmann, R. (1997): On the Economic Benefits and Fiscal Requirements of Moving from Unfunded to Funded Pensions, AICGS Research Report 4, American Institute of Contemporary German Studies, The Johns Hopkins University.Google Scholar
- Iglesias, A. (1999) La Reforma a las Pensiones, manuscript in progress, Santiago.Google Scholar
- ILO (1996): América Latina y el Caribe: Panorama Laboral’ 95, No.2.Google Scholar
- Loayza, N. (1996): The Economics of the Informal Sector: A Simple Model and Some Empirical Evidence from Latin America, manuscript, Policy Research Department, The World Bank, Washington, DC, January.Google Scholar
- Lora, E. (1997): Una Década de Reformas Estructurales en América Latina: Qué se ha Reformado y Cómo Medirlo, manuscript, Inter-American Development Bank, Washington, D.C., March.Google Scholar
- Marshall, J. y K. Schmidt-Hebbel (1994): Chile: Fiscal Adjustment and Successful Performance, in W. Easterly, C.A. Rodriguez, and K. Schmidt-Hebbel (eds.): Public Sector Deficits and Macroeconomic Performance. Oxford University Press, Oxford.Google Scholar
- PrimAmérica Consultores (1999): Sistema de AFP en Chile: Antecedentes Estadísticos, manuscript, Santiago.Google Scholar
- Schmidt-Hebbel, K. (1998a): Does Pension Reform really spur Productivity, Saving, and Growth?, Central Bank of Chile Working Papers 33, March.Google Scholar
- Schmidt-Hebbel, K. (1998b): Chile’s Takeoff: Facts, Challenges, Lessons, Central Bank of Chile Working Papers 34, March.Google Scholar
- Schmidt-Hebbel, K. (1997a): Pension reform, Informal Markets, and Long-Term Income and Welfare, EDI — The World Bank manuscript, Washington, D.C., October.Google Scholar
- Schmidt-Hebbel, K. (1997b): Fiscal and Macroeconomic Effects of Colombia’s Pension Reform, Revista de Análisis Económico 12 (2): 37–71.Google Scholar
- Superintendency of Pension Funds Administrators (1999): The Chilean Pension System. Superintendency of Pension Funds Administrators, Santiago, Third Edition.Google Scholar
- Uthoff, A. (1994): Some Features of Current Pension System Reform in Latin America, Revista de Análisis Económico 9 (1): 211–35.Google Scholar
- Van den Noord P, and R. Herd, R. (1994): Estimating Pension Liabilities: A Methodological Framework, OECD Economic Studies 23: 131–166.Google Scholar
- Wallich, C. (1983): Savings Mobilization through Social Security: The Experience of Chile during 1916–1977, World Bank Working Paper 553, The World Bank, Washington, DC.Google Scholar
- World Bank (1994): Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. Oxford University Press, Oxford.Google Scholar
Copyright information
© Springer-Verlag Berlin Heidelberg 2001