---

Mongolia Economic Update, April 2022: Navigating Stronger Headwinds - Fiscal Sustainability of the Mongolian Pension Scheme

Autor: Banco Mundial
Año: 2022
Resumen: The report provides recent macroeconomic developments, outlook, and risks that Mongolia faces. The timing of the release of this report is ideal considering that, the Mongolian economy, which was recovering from the COVID-19 on the back of a successful vaccination program and income support, faced new challenges due to tightening of global financing conditions, triggered by a surge in inflation in advanced economies. This development complicates Mongolia’s repayment of its large external debt. Mounting instability and heightened risks call for adjustments in macroeconomic policies. The report also includes a special topic on fiscal sustainability of the Mongolian pension scheme. A series of parametric reforms are recommended to improve the financial sustainability of the current pensions system, which relies heavily on budget subsidy. Produced in collaboration with the SPJ team, this discussion was timely considering a forthcoming pension reform to improve Mongolia’s long-term fiscal sustainability.

Fuente: Banco Mundial
Clasificación: Reformas de Pensiones
Tipo de Publicación: Informes
Idioma:

Para visualizar el documento, clic aquí »

---

Voluntary Savings Schemes to Protect Informal Workers in Jordan

Autor: Rother, Friederike; Chartouni, Carole; Sanchez-Reaza, Javier; Brodersohn, Ernesto; Pallares-Miralles, Montserrat.
Año: 2022
Resumen: This paper proposes a framework of voluntary savings schemes (VSS) in Jordan that can complement the current formal sector arrangements to better protect informal workers against economic shocks, unemployment, old age, or disability. As benefits of traditional mandatory pension systems worldwide have been cut substantially since the 1990s, voluntary defined contribution schemes are increasingly trying to fill the gap. In many countries, including in low-income countries, special voluntary savings schemes have been introduced to protect informal workers. Blending the knowledge from best practices internationally with the cluster methodology developed specifically for Jordan, the paper provides an overview of the current system of social security in Jordan and presents policy options to lower informality, extend social protection coverage, and provide more adequate protection to workers.

Fuente: Banco Mundial
Clasificación: Beneficios
Tipo de Publicación: Documentos de Trabajo
Idioma:

Para visualizar el documento, clic aquí »

---

Distributional Policies and Social Cohesion in a High-Unemployment Setting

Autor: Agüero, Jorge M.; Fasola, Eniola.
Año: 2022
Resumen: This paper studies the impact of distributional policies on social cohesion. The focus is on South Africa, a country with the highest unemployment rate worldwide and a major destination hub for the forcibly displaced. The paper uses a regression discontinuity design based on the eligibility rule of an unconditional cash transfer program (Old Age Pension) together with multiple rounds of the country’s Social Attitudes Survey and estimates the impact of the cash transfer to the local population on over 100 variables capturing different dimensions of social cohesion, while accounting for multiple hypothesis testing. Results show a limited impact of the transfer on social cohesion. Transfer increases life satisfaction and views favorable towards racial diversity. However, it has only a marginal effect on interpersonal trust and a very small effect on attitudes towards immigration. These findings are consistent with theoretical models where anti-immigrant behaviors are not the result of low-income but rather due to non-wage factors such as ethnic background or language barriers.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

Para visualizar el documento, clic aquí »

---

The Distributional Impact of Taxes and Social Spending in Bulgaria with an Application to Green Fiscal Policies

Autor: Vaughan, Kristina Noelle; Cabrera, Maynor Vinicio.
Año: 2022
Resumen: This paper uses methods developed by the Commitment to Equity Institute and data from the European Union Statistics on Income and Living Conditions Survey as well as the Household Budget Survey to assess the impact of the fiscal system on poverty and inequality in Bulgaria. This paper presents the first detailed distributional analysis of the fiscal system in Bulgaria including an analysis of the contribution of the individual components of the system. Overall, the author find that the fiscal system in Bulgaria contributes to inequality reduction. The authors find that the fiscal system is poverty reducing when using the lower US$5.50 2011 revised PPP poverty line, and poverty increasing when using the higher EU at-risk-of-poverty poverty line. The difference in results is due to different incidence of taxation along the income distribution. Th authors find that most of the redistributive and poverty-reducing impacts are attributable to contributory pensions, though this is not likely to be sustainable in the context of a rapidly aging population and a dwindling contributory base. Direct taxes and transfers are relatively ineffective in reducing inequality and have one of the lowest redistributive impacts in the EU. As an application of the CEQ framework, the author consider the poverty and inequality impacts of increasing carbon taxation and removing fossil fuel subsidies in line with Bulgaria’s decarbonization goals. The authors find that these measures lead to an increase in poverty but have negligible impacts on inequality. The authors find that recycling revenues through targeted lump-sum transfers has the greatest mitigating impact on poverty and leads to declines over baseline inequality.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

Para visualizar el documento, clic aquí »

---

Life Cycle Savings in a High-Informality Setting: Evidence from Pakistan

Autor: Joubert, Clément; Kanth, Priyanka.
Año: 2022
Resumen: The combined forces of population aging, weakening family and village risk-sharing networks, and low formal pension coverage will make financing elderly consumption a major challenge for the future. This study examines whether households in high-informality settings, where participation in pension schemes is rare, accumulate wealth over the life cycle and what mix of assets and liabilities composes that wealth. Pakistan is an ideal setting, with 88.5 percent of the population in informal employment and limited wide-scale social protection targeting the elderly. Data on housing wealth, land holdings, financial wealth, household durables, and owned businesses are assembled from eight rounds of representative household surveys that span 18 years (2001–18). Changes associated with age are disentangled from differences between cohorts and year effects by applying decomposition analysis. The average informal Pakistani household accumulates 4.2 years’ worth of consumption between the head’s ages of 25 and 65, mostly in the form of residential housing. Wealth accumulation is slower early in the life cycle and picks up speed between ages 40 and 65. Land is an important part of rural households’ portfolio but grows little over the life cycle (10 months’ worth). More liquid forms of wealth such as financial wealth also grow with age, but in much more modest amounts. Overall, consistent with improving living standards and expectations that family support may be less available than in the past, the fraction that reaches old age with significant net worth has increased over the period analyzed, suggesting a potential demand for long-term saving schemes designed for the informal sector.

Fuente: Banco Mundial
Clasificación: Mercado Laboral
Tipo de Publicación: Documentos de Trabajo
Idioma:

Para visualizar el documento, clic aquí »

---