Experimental Design of a Non-Contributory Social Security Program in Mexico
Many countries around the world have introduced non-contributory social security programs, including Brazil, Bangladesh, Mexico, and South Africa. Non-contributory social security programs are implemented as a poverty alleviation measure for elderly with no contributory social security coverage or employer provided pensions. Given the worldwide trend of aging populations, it is important to learn about the long-term and short-term effects of these programs.
RAND conducts and evaluates social policy interventions aimed at improving the well-being of the population. With the State of Yucatan, Mexico, we are designing a non-contributory social security program for towns with more than 20,000 inhabitants, and evaluating its impact on the welfare of residents 70 years or above. We are employing a randomized design with treatment and control groups and measurements before and after the intervention. People over age 70 get a pension equivalent to US$78 PPP (Purchasing Power Parity) per month. The study follows both treatment and control groups over time to examine short and longer term effects. This is a unique project to test and understand the effects of non-contributory pension systems on the health and welfare of the elderly.
Learn more about the Social Policy Interventions field team and their efforts on this project
Government of Yucatan and the United States National Institute of Aging
Emma Aguila and Arie Kapteyn, principal investigators
Gabriela Castro and Norely Martinez, researchers
Claudia Diaz, Alessandro Malchiodi and Sarah Outcault, assistant policy analysts
Joanna Carroll and Sandy Chien, research programmers