The extension of social security coverage in developing countries
نویسندگان
چکیده
We investigate the dynamic general equilibrium effects of introducing a social assistance program to elderly informal sector workers in developing countries. We find that the extension of such “retirement benefits” in environments with lacking private sector risksharing mechanisms results in welfare increases and relatively minor efficiency losses. Our results suggest that welfare gains attributed to the insurance and redistribution function of the social assistance program dominate welfare losses from distortionary effects of pension payments. JEL Classification: E6, E21, E26, H30, H53, H55, I38, O17
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