Can a Small Social Pension Promote Labor Force Participation? : Evidence from the Colombia Mayor Program

Pfutze, Tobias ; Rodriguez Castelan, Carlos

World Bank, Washington, DC

关键词: LIVING STANDARDS;    PROGRAM BENEFICIARIES;    JOBS;    EMPLOYMENT;    RISKS;   

DOI  :  10.1596/1813-9450-7516
RP-ID  :  WPS7516

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

One of the primary motivations behindthe establishment of noncontributory pension programs is toallow beneficiaries to retire from the labor force. Yet, aswith other unconditional cash transfer schemes, theiraggregate effects may be more complex. Using panel data andinstrumental variable techniques, this paper shows that theeffect of one such program, Colombia Mayor, has been toraise the labor force participation of relatively youngermale beneficiaries. This increase occurred precisely in theoccupations with characteristics that are likely to requiresome up-front investment. The paper concludes that thetransfer effectively loosened the liquidity constraints toremaining in these occupations. However, no such effect isfound among women or older beneficiaries.