Key Findings Details
First-Round Impacts of the 2008 Chilean Pension System Reform
Jere Behrman, Maria Cecilia Calderon, Olivia S. Mitchell, Javiera Vasquez and David Bravo
- We evaluate the impacts of the 2008 Chilean Pension reform by comparing household survey data from before (2006) and after (2009) the system changed.
- While the poor in 2009 seemed less-well informed about the reform compared to non-poor respondents, those who lived in a poor household with a member age 65 and over were more likely to have heard of the new “basic pension.”
- Targeted poor households with elderly members received about 2.4 percent more household annual income, with little evidence of crowding-out of private transfers.
- Recipient household welfare probably increased due to slightly higher expenditures on basic consumption needs, including healthcare and leisure. They also reported better self-rated health.