Carlos Grushka

From reform to crisis: Argentina's pension system

Argentina underwent economic and social collapse in December 2001. The crisis brought the worst socioeconomic indicators in its history, and the pensions system was not immune from this disaster, which was unparalleled in any middle-income developing country. In 1994 the pensions system was restructured, and was regarded as a viable model for other reforms elsewhere. This article discusses in general terms the features of the current pensions scheme, the structural problems that were not resolved in the reform of 1994, the relation between that reform and the governments financial crisis, and the impact of the economic collapse on the pensions system. Finally, it discusses some aspects of the challenges faced in building a system that is both financially viable and has the potential to close the major gaps in coverage affecting both the working population and the aged.

Participation of seniors in the Argentinian labour market: An option value model*

The aim of this article is to define the factors which determine seniors decisions to continue to participate in the labour market in Argentina. An option value model is developed. This model is used to produce estimates based on micro-data drawn from household surveys. These indicate the relative importance of the impact of conditions governing eligibility for benefits on decisions to remain actively employed. Work history is found to be the main factor in such decisions. Inadequacy of social security benefits and accumulated human capital also create incentives for economic participation in old age. On the basis of these findings, compensatory policy adjustments, to improve coverage, increase benefit levels and improve employment conditions for seniors, are proposed.

Disability insurance risks: The Argentinian case

This article analyses the risk of disability facing workers who contribute to the Argentinian Integrated Social Security System (Sistema Integrado Previsional Argentino— SIPA). Using administrative records as our source of data for the period 2000-2006, the results indicate that 1.46 workers per 1,000 became disabled annually during that period. The risk of disability rates were higher for men than for women, but increased with age for both sexes. The risk of disability rates have also been broken down by pathology and social security scheme, taking the effects of age and sex into account. To conclude, international comparisons are presented.