Gender pension gaps in a private retirement accounts system: A dynamic model of household labor supply and savings

This paper develops and estimates a dynamic model of individuals’ couples’ labor supply, savings, retirement decisions to analyze how the design Chile’s privatized pension system reform undertaken in 2008 affect gender gaps old-age poverty. Chile has one longest-running private retirements accounts systems world, which served as for many countries. The using pre-reform data compares model’s short-term forecasts with reduced form reform’s causal impacts. provides accurate forecasts, so it is used evaluate actual counterfactual changes men’s women’s supply savings decisions, receipts, program costs over longer time horizon. results show that three features significantly reduce gaps: expanding minimum benefit eligibility, providing per-child bonus, increasing age be equal men’s. Overall, largely achieved its goals reducing old poverty, although new double system.