Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88001
Authors: 
Auerbach, Paula
Genoni, María Eugenia
Pagés-Serra, Carmen
Year of Publication: 
2005
Series/Report no.: 
Working Paper, Inter-American Development Bank, Research Department 537
Abstract: 
This paper analyzes the reasons behind the low rates of contribution to social security programs in developing countries. Using a large set of harmonized household surveys from Latin America we compare contribution patterns among wage employees, for whom participation is compulsory, with contribution patterns among self-employed workers, for whom participation is often voluntary. In all countries, contribution rates among salaried workers are similarly correlated with education, earnings, size of the employer, household characteristics and age. In addition, contribution patterns among salaried workers are highly correlated with contribution patterns among the self-employed. Our results indicate that on average more than 30 percent of the explained within-country variance in contributions patterns may be accounted for by individuals’ low willingness to participate in old-age pension programs. Nonetheless, we also find evidence suggesting that some workers are rationed out of social security against their will.
Document Type: 
Working Paper

Files in This Item:
File
Size
652.89 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.