The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile
Many social security systems face high and escalating disability costs. In Chile's new system, the disability assessment procedure includes participation by private pension funds (AFPs) and insurance companies, who finance the benefit, have a direct pecuniary interest in controlling costs and a...
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| Format: | Journal Article |
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2012
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| Online Access: | http://hdl.handle.net/10986/5256 |
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okr-10986-52562021-04-23T14:02:21Z The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile James, E. Edwards, A. C. Iglesias, A. Many social security systems face high and escalating disability costs. In Chile's new system, the disability assessment procedure includes participation by private pension funds (AFPs) and insurance companies, who finance the benefit, have a direct pecuniary interest in controlling costs and are able to pursue this objective by helping to set criteria and providing countervailing information. We hypothesize that these procedures and incentives will keep costs low, by cutting the incidence of successful claims. Using the Cox proportional hazard model and a retrospective sample of new and old-system affiliates (EPS, 2002), we find that disability hazard rates are only 20-35% as high in the new system as in the old traditional system. Analysis of mortality rates Suggests that the new system has accurately targeted individuals with more severe medical problems. 2012-03-30T07:32:01Z 2012-03-30T07:32:01Z 2009 Journal Article Journal of Pension Economics & Finance 1474-7472 http://hdl.handle.net/10986/5256 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Chile |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| geographic_facet |
Chile |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
Many social security systems face high and escalating disability costs. In Chile's new system, the disability assessment procedure includes participation by private pension funds (AFPs) and insurance companies, who finance the benefit, have a direct pecuniary interest in controlling costs and are able to pursue this objective by helping to set criteria and providing countervailing information. We hypothesize that these procedures and incentives will keep costs low, by cutting the incidence of successful claims. Using the Cox proportional hazard model and a retrospective sample of new and old-system affiliates (EPS, 2002), we find that disability hazard rates are only 20-35% as high in the new system as in the old traditional system. Analysis of mortality rates Suggests that the new system has accurately targeted individuals with more severe medical problems. |
| format |
Journal Article |
| author |
James, E. Edwards, A. C. Iglesias, A. |
| spellingShingle |
James, E. Edwards, A. C. Iglesias, A. The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| author_facet |
James, E. Edwards, A. C. Iglesias, A. |
| author_sort |
James, E. |
| title |
The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| title_short |
The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| title_full |
The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| title_fullStr |
The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| title_full_unstemmed |
The Impact of Private Participation and Countervailing Information on Disability Costs : Evidence from Chile |
| title_sort |
impact of private participation and countervailing information on disability costs : evidence from chile |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5256 |
| _version_ |
1764394473936125952 |