The Effects of Noncontributory Pensions on Material and Subjective Well-Being

Abstract

for providing key inputs and advice for this work, and acknowledge a grant from GTZ for financial support. The authors declare that they have no financial or material interests in the results of this study. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, the countries they represent, or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Another brick on the Wall: On the Effects of Non-Contributory Pensions on Material and Subjective Well Being

“…More importantly, we find that our results in subjective well-being and consumption are qualitatively like those of Bando, Galiani and Gertler (2020) and Galiani, Gertler and Bando (2016) Note: Based on 1,939 individuals, out of which 918 were allocated to treatment and 1,021 to control. Stratification imposed balance in the gender of the older adult (male or female), geographic location of the household (rural, urban, greater urban), and the score to assess the household living conditions (DNPC, STPA, or STPB).…”

Old-Age Income Security and Tourism Demand: A Quasi-Experimental Study

“…The Basic Old-Age Pension (BOAP) is introduced in January 2008 in an effort to expand pension coverage and complement the NPS. The BOAP is a noncontributory social pension in which access to benefits does not require a contributory record (Bando, Galiani, and Gertler 2016). This type of pension scheme has been widely adopted in Africa, Latin America, and Southeast Asia in an attempt to guarantee a minimum income for the disadvantaged elderly (Barrientos and Lloyd-Sherlock 2002;Cheng et al 2018).…”

“…A number of countries have introduced noncontributory public pensions in order to complement shrinking contributory pension funds and to guarantee a minimum income for the disadvantaged elderly (Barrientos and Lloyd-Sherlock 2002;Cheng et al 2018). This type of pension reform has been effective in alleviating poverty and improving income security among nonpensioners (Bando, Galiani, and Gertler 2016;Barrientos and Lloyd-Sherlock 2002). To date, no studies have examined whether and to what extent improvements in old-age income security affect tourism consumption of seniors with limited pension coverage.…”

Another brick on the wall: On the effects of non-contributory pensions on material and subjective well being

“…We also test whether the transfer had impacts on physical health or subjective well-being. Evidence from Mexico and Peru show non-contributory pensions improve well-being by allowing beneficiaries to reduce work for pay while increasing consumption (Galiani, Gertler and Bando, 2016;Bando, Galiani and Gertler, 2020).…”

“…In contrast, in previous work, we took a comprehensive approach in examining the influence of Peru's and Mexico's non-contributory pension schemes of Pensión 65 and Adultos Mayores on both material and subjective well-being (Bando, Galiani and Gertler, 2020;Galiani, Gertler and Bando, 2016). Indeed, pensions may allow older adults to reduce their time working and increase their time enjoying life.…”