What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly

In 2013, Mexico's Social Pension Program for the Elderly was expanded by changing its eligibility threshold from age 70 to age 65. Using pooled cross-sectional data from Mexico's National Household Income and Expenditure Survey, the exoge...

Full description

Bibliographic Details
Main Authors:	Avila-Parra, Clemente, Escamilla-Guerrero, David
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2017
Subjects:	PENSION FUNDS PENSIONS LABOR SUPPLY ELDERLY SOCIAL ASSISTANCE
Online Access:	http://documents.worldbank.org/curated/en/949071509368363092/What-are-the-effects-of-expanding-a-social-pension-program-on-extreme-poverty-and-labor-supply-evidence-from-Mexicos-pension-program-for-the-elderly http://hdl.handle.net/10986/28614

id	okr-10986-28614
recordtype	oai_dc
spelling	okr-10986-286142021-06-08T14:42:45Z What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly Avila-Parra, Clemente Escamilla-Guerrero, David PENSION FUNDS PENSIONS LABOR SUPPLY ELDERLY SOCIAL ASSISTANCE In 2013, Mexico's Social Pension Program for the Elderly was expanded by changing its eligibility threshold from age 70 to age 65. Using pooled cross-sectional data from Mexico's National Household Income and Expenditure Survey, the exogenous variation around eligibility age was exploited to uncover the causal effects of this expansion on extreme poverty and labor supply of the newly eligible population, and to explore potential transmission mechanisms. Applying quasi-experimental methods, results show that the expansion of Mexico's Social Pension Program for the Elderly not only reduced the probability of the elderly being extreme poor, but it also reduced the extreme poverty gap, and the extreme poverty severity indexes of the elderly population. These effects on extreme poverty are generalizable to all individuals of the treated household. The results suggest that the expansion of the Social Pension Program for the Elderly did not have short-term effects on the labor force participation of the elderly. Accordingly, the analysis does not find that the program reduced labor income. In contrast with other impact evaluations of similar programs, the analysis does not find that the expansion of Mexico's program had a crowding out effect on domestic or international private transfers to the elderly. 2017-10-30T21:45:55Z 2017-10-30T21:45:55Z 2017-10 Working Paper http://documents.worldbank.org/curated/en/949071509368363092/What-are-the-effects-of-expanding-a-social-pension-program-on-extreme-poverty-and-labor-supply-evidence-from-Mexicos-pension-program-for-the-elderly http://hdl.handle.net/10986/28614 English Policy Research Working Paper;No. 8229 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	PENSION FUNDS PENSIONS LABOR SUPPLY ELDERLY SOCIAL ASSISTANCE
spellingShingle	PENSION FUNDS PENSIONS LABOR SUPPLY ELDERLY SOCIAL ASSISTANCE Avila-Parra, Clemente Escamilla-Guerrero, David What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
geographic_facet	Latin America & Caribbean Mexico
relation	Policy Research Working Paper;No. 8229
description	In 2013, Mexico's Social Pension Program for the Elderly was expanded by changing its eligibility threshold from age 70 to age 65. Using pooled cross-sectional data from Mexico's National Household Income and Expenditure Survey, the exogenous variation around eligibility age was exploited to uncover the causal effects of this expansion on extreme poverty and labor supply of the newly eligible population, and to explore potential transmission mechanisms. Applying quasi-experimental methods, results show that the expansion of Mexico's Social Pension Program for the Elderly not only reduced the probability of the elderly being extreme poor, but it also reduced the extreme poverty gap, and the extreme poverty severity indexes of the elderly population. These effects on extreme poverty are generalizable to all individuals of the treated household. The results suggest that the expansion of the Social Pension Program for the Elderly did not have short-term effects on the labor force participation of the elderly. Accordingly, the analysis does not find that the program reduced labor income. In contrast with other impact evaluations of similar programs, the analysis does not find that the expansion of Mexico's program had a crowding out effect on domestic or international private transfers to the elderly.
format	Working Paper
author	Avila-Parra, Clemente Escamilla-Guerrero, David
author_facet	Avila-Parra, Clemente Escamilla-Guerrero, David
author_sort	Avila-Parra, Clemente
title	What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
title_short	What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
title_full	What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
title_fullStr	What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
title_full_unstemmed	What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly
title_sort	what are the effects of expanding a social pension program on extreme poverty and labor supply? : evidence from mexico's pension program for the elderly
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/949071509368363092/What-are-the-effects-of-expanding-a-social-pension-program-on-extreme-poverty-and-labor-supply-evidence-from-Mexicos-pension-program-for-the-elderly http://hdl.handle.net/10986/28614
_version_	1764467287672225792

What Are the Effects of Expanding a Social Pension Program on Extreme Poverty and Labor Supply? : Evidence from Mexico's Pension Program for the Elderly

Similar Items