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Can Latin America Protect the Elderly with Non-Contributory Programmes? The Case of Uruguay

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Abstract:

Coverage of contributory pension programmes has been quite disappointing in Latin America in the aftermath of the reforms. The question thus arises as to whether non-contributory programmes could fill the gap. Uruguay is atypical in this region in that the proportion of the elderly receiving contributory pensions is high, and the incidence of poverty among the aged population is lower than among any other age group. But several observers fear that this situation could deteriorate in the future, because the conditions for accessing the pensions have been significantly tightened in the past decade. This article assesses several options for reforming the existing non-contributory pension programme, and estimates their fiscal cost.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1467-7679.2005.00308.x

Affiliations: Departamento de Economía, FCS-UDELAR, José E. Rodó 1854 CP11200 Montevideo, Uruguay ( ), Email: Natalia@decon.edu.uy

Publication date: November 1, 2005

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