A role for universal pension? Simulating universal pensions in Ecuador, Ghana, Tanzania, and South Africa

Authors

Publication Date

Feb 2018

Summary

We use four novel, cross-country comparable tax-benefit microsimulation models for Ecuador, Ghana, Tanzania, and South Africa to evaluate ex ante the expansion of a universal old age pension in a static setting. Universal pensions would significantly reduce poverty and inequality in settings in which no means-tested old-age pensions exist (such as Ghana and Tanzania). If means-tested old-age pensions exist and shall be maintained, universal pensions as a top-up scheme only make a difference for the income distribution if the existing schemes do not reach the entire vulnerable population, such as in Ecuador. Costs for the proposed schemes are substantial.

Publication type

Research Paper

Series Number

2018/23

Research area

Tax and benefit systems

Links

https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2018-23.pdf

Cid:524919