By Robert Holzmann, David A. Robalino, Noriyuki Takayama
Ultimate the insurance hole discusses how social pensions and different retirement source of revenue transfers can be utilized to shut the assurance hole of crucial pension structures. The booklet is geared up in 3 elements. the 1st half makes the case for those courses via assessing the level of the insurance hole world wide and comparing the vulnerability to poverty of the aged. the second one half reports the reports of low, center and excessive source of revenue nations with the layout and implementation of retirement source of revenue transfers. The final half specializes in layout concerns. It analyses the inducement impact of those courses on hard work provide and rate reductions, economic charges, the position of concentrating on mechanisms, and choices when it comes to institutional layout and management. The e-book additionally discusses the function of promising tools reminiscent of matching contributions to arrive elements of the casual zone.
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Additional resources for Closing the Coverage Gap: Role of Social Pensions and Other Retirement Income Transfers
A third, related, area is the study of labor market transitions. We have seen that coverage is not a continuous state; workers move into and out of the informal sector. It would be important to have a better understanding of the determinants of these transitions and to try to pin down the role played by social protection policies. Turning to policy analysis, a priority is to build evidence about the potential role of matching contributions. This is an ambitious task that will require the design and implementation of well-monitored and well-evaluated pilots at the country level.
Recipients of noncontributory pensions should be included as covered, but in a number of countries such information is either unavailable or unclear. Finally, there exist pension systems that provide only lump-sum payments. Some argue that beneficiaries of these payments should be regarded as covered, while others maintain that only recipients of regular payments should be considered covered. Our preferred definition of elderly coverage includes those individuals who are regularly receiving a pension; lump-sum payments do not exactly provide old-age income security because individuals tend to spend those transfers too rapidly.
5 TECHNICAL EFFICIENCY Chapter 10 develops a framework for analyzing the potential distortions or economic costs resulting from retirement income transfers, distinguishing between effects related to the transfer itself and those related to the financing mechanism. Regarding the effects of the 1. OVERVIEW AND PRELIMINARY POLICY GUIDANCE 13 transfer, the chapter looks at changes in labor supply, sector choice (formal or informal), retirement ages, and the saving rate. From the financing side, the focus is on the potential impacts of the program on the tax burden, which can affect investments, growth, employment levels, and the size of the informal sector.