Better Pensions, Better Jobs: Towards Universal Coverage in Latin America and the Caribbean

The Latin America and Caribbean (LAC) region has reduced its inequality and poverty, and is looking towards the future with greater optimism than in the past. As the region grows, new problems appear that economic policymakers must address. How to provide adequate pensions for the elderly is one such problem. This book offers an analysis of pension systems from the perspective of the functioning of the regions labor markets. It clarifies why, more than half a century after pension systems were created, only a minority of workers in the region save for their pension in the contributory systems through payroll taxes. The study points out that the problem lies not only in the lack of coverage, but also in the low level of benefits, even of contributory pensions. It argues that to design public policies for pensions, it is essential to understand the complex web of interactions between employers and workers that take place in the labor market. Este libro ofrece un análisis de los sistemas previsionales desde la perspectiva del funcionamiento de los mercados laborales de la región. Esclarece por qué, después de más de medio siglo de haber sido creados, solo una minoría de los trabajadores de la región ahorra para su pensión en los sistemas contributivos a través de impuestos a la nómina. Además, analiza los cambios en los estatus laborales de los trabajadores y sus implicaciones para la frecuencia con la que estos cotizan para su pensión, y para los montos de las pensiones. Señala así que el problema no solo reside en la falta de cobertura, si no en la baja cuantía de las pensiones, aún las de aquellos que cotizan. Argumenta que, para poder diseñar políticas públicas en materia de pensiones, es indispensable comprender la compleja red de interacciones entre empresas y trabajadores que se observa en el mercado laboral.;Today, only 40% of citizens aged 65 and older in Latin America and Caribbean have a contributory pension (in the sense of having made contributions through a payroll tax) and 20% enjoy a non-contributory pension (or, more correctly, a pension paid from the collection of general taxes levied on the public). The remaining 40% of the elderly have to work into old age or rely on their families to support them. Although today the region has a relatively young population, that group is aging rapidly. The roughly 40 million elderly citizens in the region in 2010 will grow to 140 million by 2050. This book documents the policies that could lead to improve