The Extension of Social Security Coverage in Developing Countries

44 Pages Posted: 13 Nov 2007 Last revised: 26 May 2009

See all articles by Chung Tran

Chung Tran

Australian National University (ANU) - School of Economics

Juergen Jung

Towson University - Department of Economics

Date Written: November 13, 2007

Abstract

We investigate the dynamic general equilibrium effects of introducing a social assistance program to elderly informal sector workers in developing countries. We find that the extension of such “retirement benefits” in environments with lacking private sector risk-sharing mechanisms results in welfare increases and relatively minor efficiency losses. Our results suggest that welfare gains attributed to the insurance and redistribution function of the social assistance program dominate welfare losses from distortionary effects of pension payments.

Keywords: Social Security, Altruism, Informal Sector, Private Transfers, Welfare

JEL Classification: E6, E21, E26, H30, H53, H55, I38, O17

Suggested Citation

Tran, Chung and Jung, Juergen, The Extension of Social Security Coverage in Developing Countries (November 13, 2007). CAEPR Working Paper No. 2007-026, Available at SSRN: https://ssrn.com/abstract=1029611 or http://dx.doi.org/10.2139/ssrn.1029611

Chung Tran (Contact Author)

Australian National University (ANU) - School of Economics ( email )

Arndt Building 25B
Canberra, Australian Capital Territory 0200
Australia

Juergen Jung

Towson University - Department of Economics ( email )

Baltimore, MD
United States
812-345-9182 (Phone)

HOME PAGE: http://https://juejung.github.io/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
212
Abstract Views
1,848
rank
160,654
PlumX Metrics