Lugar Sala 104, Campus Santiago
Fecha y Hora 5 septiembre 2019 12.00 a 13.00 hrs.
Presenta: Marcela Parada-Contzen, U. de Concepción, Ph.D. Economics University of North Carolina
Título: “Help! I’m not so self-assured! On the design of zero-pillar compensations”.
This paper provides a mechanism for the design of policies that attempt to ameliorate income disparities and poverty among the elderly in defned-contribution retirement systems. Because lifetime events impact wealth accumulation through multiple channels, this paper estimates a set of correlated equations that capture labor market behavior, portfolio and savings decisions, risk preferences, family characteristics, medical care consumption, expected duration of life, and health status. Using data from the Chilean retirement system, I propose a bonus of between 177 and 6,252 dollars payable to women to compensate for gender inequality due to marital status and a compensation of between 1,965 and 3,912 dollars for the bottom 10% of the wealth distribution to alleviate inequality among women. For compensation due to child bearing, I propose a bonus payable up to the third quartile of the woman’s wealth distribution that varies between 344 and 4,577 dollars per additional child. Finally, to compensate for health shocks, I propose a bonus that varies between 474 and 5,509 dollars.