Coauthors: William Fernandez (Hertie School of Governance), Kun Lee (LIS & LISER), Javier Olivera (LISER & National Bank of Belgium)
In this project, we document evidence on the impact of social pension reforms on the labour supply of the recipients' adult children. Our evidence is based on a comparative analysis of five countries sharing a similar context - Chile, Peru, Colombia, Mexico and South Korea. These countries either implemented or significantly expanded (non-contributory) social pensions between 2007 and 2014, while also featuring large pension gaps, old-age poverty rates and a sizeable share of intergenerational households. Drawing on a common difference-in-difference strategy, we show that in most cases, social pensions increase female labour supply. This is likely attributed to older adults retreating from paid work and supporting unpaid work for working-age adults with children.
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