The redistributive effect of pensions. The case of Uruguay

The redistributive effect of pensions. The case of Uruguay | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The redistributive effect of pensions. The case of Uruguay Alvaro Forteza, Diego Tuzman This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5319388/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract In this paper, we present estimations of the distribution and redistribution of per period income that can be associated to social security using two approaches, one that follows the conventional practice of treating pensions as government transfers and another one that proposes to measure pension income as the return of pension wealth. Using data for Uruguay, we find that the former approach estimates less inequality in the presence of pensions and much larger decrease in inequality due to pensions than the latter. We show that the implicit assumption that individuals would not increase voluntary savings in the absence of pensions contributes to a strong apparent equalizing effect of pensions. As several scholars have warned, this assumption is not warranted. JEL Classification: D31, H55, I38 Pensions Distribution Redistribution Fiscal incidence Fiscal policy Full Text Additional Declarations No competing interests reported. Supplementary Files FortezaTuzman.zip Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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