A simulation of social security reforms in Latin America: what has been gained?

Abstract

This paper presents the results of simulation analysis of the likely medium and longer term fiscal and equity outcomes of structural reforms to social security systems in Latin America. While several studies - conducted both prior to reforms and since - have presented the simulated fiscal impact of the shift to individual accounts in the region, rarely do existing studies extend beyond a single country case. The contribution of this paper is to evaluate the likely fiscal and equity impact of very different reforms in very different countries, using a uniform set of indicators and applying a single generic simulation model, the World Bank's Pension Reform Options Simulation Toolkit (PROST).