The gender impact of pension reform

Estelle James, Alejandra Cox Edwards, Rebeca Wong

Research output: Contribution to journalArticlepeer-review

30 Scopus citations


Pension systems may have a different impact on the two genders because women are less likely than men to work in formal labor markets and earn lower wages when they do. Recent multi-pillar pension reforms tighten the link between payroll contributions and benefits, leading critics to argue that they will hurt women. In contrast, supporters of these reforms argue that women will be helped by the removal of distortions pillar and the better targeted redistributions in the new systems. This paper examines the differential impact of the new and old systems in three Latin American countries – Chile, Argentina and Mexico. Based on household survey data, we simulate the wage and employment histories of representative men and women, the pensions that these are likely to generate under the new and old rules, and the relative gains or losses of the two genders due to the reform. We find that women do indeed accumulate private annuities that are only 30–40% those of men in the new systems. However, this effect is mitigated by sharp targeting of the new public pillars toward low earners, many of whom are women, and by restrictions on payouts from the private pillars, particularly joint annuity requirements. As a result, low-earning married women are the biggest gainers from the pension reform.

Original languageEnglish (US)
Pages (from-to)181-219
Number of pages39
JournalJournal of Pension Economics and Finance
Issue number2
StatePublished - Jul 2003
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management


Dive into the research topics of 'The gender impact of pension reform'. Together they form a unique fingerprint.

Cite this