Show simple item record Tran, Chung Jung, Juergen 2007-11-13T20:00:04Z 2007-11-13T20:00:04Z 2007-11-13
dc.identifier.uri en
dc.identifier.uri en
dc.description.abstract We investigate the effects of extending the coverage of social security to uncovered elderly individuals in the informal sector in developing countries. We use a stochastic overlapping generations framework and incorporate important characteristics of developing countries including family transfers and a sizeable informal sector. Our calibrated model predicts that the introduction of a moderately sized social assistance program decreases steady state output by up to 3.25% and labor supply by up to 2.5%. In contrast to literature focusing on developed countries, the model predicts that extending the coverage of the social security system results in welfare gains for low income households. This result indicates that the insurance function and the redistribution function of the social assistance program dominate the distortionary effects in an environment without adequate risk sharing mechanisms and high inequality. en
dc.format.extent 349785 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US en
dc.publisher Center for Applied Economics and Policy Research en
dc.relation.ispartofseries CAEPR Working Papers en
dc.relation.ispartofseries 2007-026 en
dc.relation.isversionof This paper is also available on SSRN and RePEc. en
dc.subject CAEPR en
dc.subject Center for Applied Economics and Policy Research en
dc.subject Social Security Reform en
dc.subject Altruism en
dc.subject Informal Sector en
dc.subject Private Transfers en
dc.subject Savings en
dc.subject Labor Supply and Welfare en
dc.title The Extension of Social Security Coverage in Developing Countries en
dc.type Working Paper en

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