Applied Seminar

Marcello Sartarelli

Universidad de Alicante


Seminar 3 – 14:30


We study empirically the effect of a universal non-contributory pension in Bolivia, Renta Dignidad, on households’ income, consumption, labour supply and living arrangements. We estimate it by using rich survey data and a regression discontinuity design, as individuals’ pension eligibility jumps discontinuously at age 60. We find that despite increasing income at the individual level, it has very little or no impact on poverty levels in old age at the household level. This is due to the fact that the non-contributory pension triggers a reduction in female labour supply and increases the size of the household as beneficiary households increase in number of members.

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