Hidden Bibliographic Details
ISBN: | 147558685X 9781475586855 1475586833 1475586205 9781475586206
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Summary: | In this paper, we study the macroeconomic impact of pension reform options in Chile, using a dynamic general equilibrium model. The main reform proposal considers raising contributions (employer side) and vehicle additional proceeds to individual accounts and to increase the support of solidarity pensions. We model increased contributions as a labor tax. We find the impact of this reform on GDP to be negative in the near to the medium run, with GDP declining by 0.5 percent by 2021, as a result of labor tax distortions which lead to a fall in labor supply, investment and to a loss in competitiveness. We also illustrate the main macroeconomics tradeoffs by analyzing alternative reforms, such as using revenues only to improve future pensions or a reform package funded by a mix of higher contributions and indirect taxes.
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Other form: | Print version: Santoro, Marika Pension Reform Options in Chile: Some Tradeoffs Washington, D.C. : International Monetary Fund,2017 9781475586206
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Standard no.: | 10.5089/9781475586206.001
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