The Effect of Noncontributory Pensions on Saving in Mexico
By Catalina Amuedo-Dorantes (San Diego State University - Department of Economics; IZA Institute of Labor Economics), Laura Juarez (Bank of Mexico), Jorge Alonso Ortiz (Instituto Tecnológico Autónomo de México (ITAM) - Centro de Investigacion Económica) This paper examines the effects of noncontributory pension programs at the federal and state levels on Mexican households' saving patterns using micro data from the Mexican Income and Expenditure Survey. We find that the federal program curtails saving among households whose oldest member is either...