Key Findings Details
Social Security Rules and Labor Force Participation of Older Workers: Evidence from Chile
Alejandra Cox Edwards and Estelle James
- Prior to its 1981 social security reform, Chile had early withdrawal from the labor force comparable to that of many European countries.
- Chile's 1981 reform increased labor force participation among older workers, especially pensioners and women, and postponed the age of pensioning.
- Reform included restrictions on early pensions, adoption of a defined contribution plan, pensioner exemption from the payroll tax, and widows retained their pensions along with the survivor benefit.