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Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program. / Pfutze, Tobias.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Pfutze, Tobias
Contributor:
Pfutze, Tobias
Rodriguez-Castelan, Carlos
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Debt markets.
Finance and financial sector development.
Health, nutrition and population.
Labor force participation.
Labor markets.
Labor policies.
Pensions.
Population policies.
Poverty monitoring & analysis.
Poverty reduction.
Social protections and labor.
Local Subjects:
Debt markets.
Finance and financial sector development.
Health, nutrition and population.
Labor force participation.
Labor markets.
Labor policies.
Pensions.
Population policies.
Poverty monitoring & analysis.
Poverty reduction.
Social protections and labor.
Physical Description:
1 online resource (44 pages)
Other Title:
Can a Small Social Pension Promote Labor Force Participation?
Place of Publication:
Washington, D.C. : The World Bank, 2015.
System Details:
data file
Summary:
One of the primary motivations behind the establishment of noncontributory pension programs is to allow beneficiaries to retire from the labor force. Yet, as with other unconditional cash transfer schemes, their aggregate effects may be more complex. Using panel data and instrumental variable techniques, this paper shows that the effect of one such program, Colombia Mayor, has been to raise the labor force participation of relatively younger male beneficiaries. This increase occurred precisely in the occupations with characteristics that are likely to require some up-front investment. The paper concludes that the transfer effectively loosened the liquidity constraints to remaining in these occupations. However, no such effect is found among women or older beneficiaries.

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