Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237491 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01212
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
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.
Subjects: 
Non-contributory pensions
poverty
mental health and wellbeing
JEL: 
H4
H3
I1
I3
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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