Bolivias informal sector is the largest in Latin America, by many definitions and measures. Bolivias high informality rate has been blamed on many factors including the burden of regulation, the ...weakness of public institutions, and the lack of perceived benefits to being formal. The high level of informality has a number of negative implications related to for low productivity, low growth, and low quality of jobs.This book presents fresh ualitative and quantitative analyses to better understand the reasons why firms are informal and the impact of normalization on their profitability, in order to inform policy actions appropriate to the reality of Bolivia.The crucial finding of the analysis is that the impact of tax registration on profitability depends on firm size and the ability to issue tax receipts. The smallest and the largest firms in the sample have lower profits as a result of tax registration because their cost of formalizing exceeds benefits. Firms in the middle range benefit from tax registration in large part due to increasing the customer base by issuing tax receipts.It presents a set of prioritized policy implications for policy makers. In the short term, the priority should be to increase the benefits of formalization through training, access to credit and markets, and business support. The second is to increase information on how to formalize and its benefits. In the medium term, the priority is to simplify formalization, regulatory and taxation procedures and reduce their costs. Increasing even-handed enforcement of taxation and regulation is also important but not a priority for micro and small firms. Measures to boost the productivity of micro and small firms in general will both help overall economic growth, employment, and, formalization.
The 2013 pension reform in Lithuania forced workers to choose their level of participation to the second pillar system. Three options were given: a lower contribution rate, a higher contribution rate ...with governmental subsidy, and the exit from the second pillar system. The aim of this article is to evaluate the best rational choice for individuals of different gender and age, depending on the expected financial returns of their second pillar accounts. Results reveal that participation in the second pillar system is always more convenient than the abandonment, even under the conservative hypothesis of zero real rate of return. Because of the governmental subsidy, the higher contribution rate can be the best choice for young and middle-aged workers, and its convenience increases with higher expected returns. The higher contribution seems to offer favourable returns to Lithuanian workers, also when compared with similar estimates for pension systems in other countries.
The present paper estimates the effect over participation outcomes of the new reform to the pension system made in Chile in 2008, using a difference in differ- ence matching estimation. The main ...results found that the treated group shows a higher withdrawal from the labor market and that they worked an average of 8 percentage points (pp) fewer months than the control group in 2009. The treated group also contributed 18 pp fewer months than the control group, and they have, on average, 6 pp more months in inactive status. Looking at the dif- ference in per capita income, the treated group has an average of US$34 more per month than the control group in 2009. Adapted from the source document.
There is widespread acceptance that much of the developed world faces a potential pensions and welfare crisis as a result of declining birth rates and an ageing population. However, there is ...considerable uncertainty about the specifics of demographic forecasting and this has significant implications for public finances. Uncertain Demographics and Fiscal Sustainability addresses the economic consequences of uncertainty and, with particular reference to European economies, explores the impact of demographic risks on public finances, including pension systems, health care and old-age care expenditures. Covering a spectrum of theoretical and empirical approaches, different types of computational models are used to demonstrate not only the magnitudes of the uncertainties involved but also how these can be addressed through policy initiatives. The book is divided into four parts covering demographic, measurement, policy and methodological issues. Each part is followed by a discussion essay that draws out key elements and identifies common themes.
The aim of the scientific article is to study the peculiarities of the operation of funded pension systems in Eastern Europe, determine their advantages, disadvantages, the impact of various factors ...on their efficiency, assess the role of funded pension insurance in them and to justify their positive experience in pension reform оf Ukraine. Research methods. When writing a scientific article, appropriate research methods were used: balance, monograph methods, the method of statistical grouping and tables, methods of analysis using generalizing indicators: absolute and relative, averages and time series data. Research methodology. The assessment of the level of social standards of pension systems in Eastern Europe and Ukraine was carried out by comparing the level of pensions, wages, replacement rate. The demographic situation was characterized by the use of forecast calculations of international financial organizations. The information and methodological base of the research was the materials of international financial organizations, which characterize the development of funded pension systems in Eastern Europe, forecast calculations in the demographic sphere, special economic literature, scientific works of domestic and foreign scientists on the study of funded pension insurance. Results. The scientific article considers the issues of reforming the national pension systems of Eastern Europe in modern conditions, the peculiarities of their development taking into account the manifestation of demographic factors, focuses on the functioning of multilevel pension models, defines the role of funded pension programmes in pension income. It is noted that modern approaches to the formation of national pension systems are based on the use of pension insurance principles. An assessment of the level of social standards in Eastern Europe is made and a comparative analysis of them with the relevant indicators in Ukraine is given, the features of the use of funded pension programmes at the present stage of reforming the pension systems of Eastern Europe are identified. The necessity and preconditions of introduction of obligatory accumulative pension insurance in Ukraine at the present stage of reforming its national pension system are substantiated, it is noted that practical use of accumulative pension programmes will gradually lead to increase of social protection level of people of retirement age, increasing investment in the national economy.
The Ecuadorian society has overcome adversity with great determination over the past few years. Periodic economic crises, external shocks, and even natural disasters tested the country's ability to ...cope with difficulties. Despite these challenges, the country has maintained a forward looking perspective and has achieved some important goals. Economic stability in the last few years has given the space for a period of sustained economic growth. During this period several development indicators have improved, and several sectors of the economy have demonstrated the dynamism and entrepreneurship that is present in the Ecuadorian culture. This title aims to provoke a lively discussion between the World Bank, the new Correa administration, and the entire country in addressing the unresolved issues that require a thoughtful approach.
The article reveals a number of shortcomings of the Soviet pension system. It explains reasons that made the state re-consider the basic principles of the pension sphere and re-construct its ...institutions. It pays a special attention to the market of the non-state pension provision, which is the most dynamic one among the markets of non-bank financial services. Fast growth of main indicators of activity of non-state pension funds (NPF) testifies to it. Creation of open NPF is most active, since they are very flexible in the context of joining or leaving them. Some of the main reasons of slow development of non-state pension provision are as follows: limited choice of financial instruments suitable for investing pension funds into them; insufficient interest of employers in financing voluntary pension programmes for employees; and low level of public information on the essence and role of the accumulative pension system in the society. The article considers the most complex problems that arise in the process of introduction of the reformed pension system in Ukraine. Using international experience and taking into account specific features of socio-economic development of Ukraine, the article develops recommendations on solution of the said problems. Introduction of the pension reform in Ukraine should rest on demographic, legal and organisational grounds. Success of the pension reform in the long-term prospect requires active actions for creation of a developed insurance industry. The considered problems and also recommendations and approaches to their solution bring us a bit closer to realisation of main goals and principles of the reformed pension system.В работе выявлен ряд недостатков советской пенсионной системы. Выяснены причины, заставившие государство пересматривать базовые принципы пенсионной сферы и перестраивать ее институты. Особое внимание уделено рынку негосударственного пенсионного обеспечения, который является самым динамичным среди рынков небанковских финансовых услуг. Об этом свидетельствует стремительный рост основных показателей деятельности негосударственных пенсионных фондов (НПФ). Наиболее активно происходит создание открытых НПФ, что связано с их большей гибкостью при входе или выходе участников. Среди основных причин медленного развития негосударственного пенсионного обеспечения следует выделить: ограниченный выбор финансовых инструментов, пригодных для инвестирования в них пенсионных средств; недостаточную заинтересованность работодателей в финансировании добровольных пенсионных программ для работников, низкий уровень разъяснительной работы по содержанию и роли накопительной пенсионной системы в обществе. Рассмотрены наиболее сложные проблемы, возникающие в процессе внедрения реформированной пенсионной системы в Украине. Исходя из международного опыта, а также опираясь на особенности социально-экономического развития Украины, разработаны рекомендации по решению указанных проблем. Внедрение пенсионной реформы в Украине должно опираться на демографические, правовые и организационные основы. Успех пенсионной реформы в долгосрочной перспективе требует активных действий с целью создания развитой страховой индустрии. Рассмотренные проблемы, а также рекомендации и подходы к их решению приближают нас еще на несколько шагов к реализации основных целей и принципов реформированной пенсионной системы.
This article is the first one to use individual data to analyze the demand for
AFP in Chile. This study implements panel data techniques which allow us to
estimate the switch probability of an AFP ...customer. Results confirm the fundamental
role of sales agents, which was already suggested by previous studies
that have used aggregated data by AFP. Particularly, we show that although
price and return elasticity of demand are low, it raises notably when associated
to a sales agent visit. El presente artículo es el primero en utilizar datos individuales para analizarla demanda por AFP en Chile. El estudio emplea técnicas de datos de panel que permiten estimar la probabilidad de traspaso de un afiliado. Los resultados obtenidos confirman el rol reponderante de las fuerzas de venta, ya sugerido previamente por estudios que utilizaron datos agregados por AFP. En particular, se muestra que si bien la sensibilidad de la demanda en relación a precios y rentabilidad es baja, ésta se incrementa notablemente cuando se asocia a la participación de un vendedor.
As the economic and financial crisis accelerates worldwide, covering the expenses driven by an aging population is a challenge both now and in the future for the pension systems. Thus it is necessary ...to adopt sustainable reforms to cushon the expected impact of these crises on the budget. In general, the strongest pressure occurs on pay-as-you-go (PAYG) pension systems. It is also essential that the reforms on pension systems should be accompanied by anti-crisis policies concerning the financial sector, the labour market and public finances.
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