nep-age New Economics Papers
on Economics of Ageing
Issue of 2009‒03‒07
two papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. The Latin American experience in pension system reform: Coverage, fiscal issues and possible implications for China By Titelman, Daniel; Vera , Cecilia; Perez Caldentey, Esteban
  2. Boomer Bulge: Dealing with the Stress of Demographic Change on Government Budgets in Canada By William B.P. Robson

  1. By: Titelman, Daniel; Vera , Cecilia; Perez Caldentey, Esteban
    Abstract: In the past two decades, Latin American countries reformed their pension systems focusing mainly on addressing the weaknesses of the contributory schemes - fiscal unsustainability, low coverage levels and a high degree of segmentation- and barely addressed the non-contributory element. The reform experiences show however that the intended reforms did not manage to meet their objectives. Firstly, to this day, a large proportion of the population remains inadequately covered by the contributory system. Secondly, the fiscal performance and outcome of the reform was worse than originally planned. The possibilities for the success of these reforms faced several constraints of a structural nature that are independent of the pension system itself and that as a result can not be overcome by a pension reform including mainly the limited savings capacity of some population groups and the instability and precariousness of the labor markets in the region. The Latin American experience shares similarities with that of China in terms of coverage, labor market informality. Both cases attest to the importance of combining contributory and non-contributory components in pension reform design.
    Keywords: Pension reform; contributory schemes; coverage; Fiscal unsustainability; Contributory coverage; contribution density; fragmentation; transition costs; pension reform in Latin America; pension reform in China
    JEL: G23
    Date: 2008–11
  2. By: William B.P. Robson (C.D. Howe Institute)
    Abstract: While the sagging economy is focusing attention on fiscal policy’s capacity to fight a slump, another challenge looms – the demographic pressures on future program spending. Short-term stimulus can only succeed if it preserves confidence in the long-run capacity of Canadian governments to provide programs and service their obligations at tolerable tax rates.
    Keywords: fiscal policy, demographics, Canadian government budgets
    JEL: H5 H6 J1
    Date: 2009–01

This nep-age issue is ©2009 by Claudia Villosio. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.