Old Age Pension Scheme in India: Distributional Impacts

2019 ◽  
Vol 39 (2) ◽  
pp. 143-165
Author(s):  
M. R. Narayana
Keyword(s):  
Old Age ◽  
Poverty Reduction ◽  
Poverty Line ◽  
Economic Effects ◽  
Policy Support ◽  
Pension Scheme ◽  
Elderly Individuals ◽  
Socio Economic Variables ◽  
Active Policy ◽  
Distributional Impacts

This article develops an empirical framework for the estimation of the economic effects and impacts of the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) and other socio-economic variables related to poverty among elderly individuals in India. Based on an official data sample of 9,852 elderly individuals, it produces evidence of the poverty-reduction effects of IGNOAPS, suggesting that it could be justified to promote more active policy support for this scheme as an instrument of poverty alleviation among elderly individuals. Four areas of policy intervention are identified for reformulation: increased pension expenditure by adjusting for inflation, linking the pension expenditure to economic growth, correction of inclusion and exclusion errors and extension of coverage to all elderly individuals in below poverty line families. It is argued that a move towards full pension provisions for all eligible elderly individuals may reduce personal income inequalities among India’s elderly population. This could also be a constitutionally sound approach applied to other countries in South Asia.

Der neoliberale Rentenkonsens in Deutschland und seine Genese

2017 ◽  
Vol 47 (187) ◽  
pp. 309-324
Author(s):  
Christian Christen
Keyword(s):  
Old Age ◽  
Pension System ◽  
Cost Effective ◽  
The Elderly ◽  
Transformation Process ◽  
Economic Effects ◽  
Pension Scheme ◽  
Core Element ◽  
Economic Developments ◽  
The Moment

The reform of the old age pension scheme the last twenty years was part of an international transformation process of the old-age insurance systems since the 1980s. The core element is the conversion from the pay-as-you-go systems to capital-funded models with a shifting to individual provision and risk taking. This politically intended break shows fatal distributional and economic effects in the present. Neither a more stable, more cost-effective, more efficient old-age insurance could be established for the majority of employees, nor did the capital market-financed pension system automatically promote innovation and economic growth. In the end, most of the political promises and allegations of the reformists have already been rejected by real social and economic developments. Poverty among the elderly will rise in the near future dramatically due to the deformation of the statutory pension system, the great distortions on the labour market and rising inequality. Nevertheless, the pension consensus still holds at the moment but a radical paradigm shift and a clear revision of past reforms are overdue. 

Pension Reform in Russia: Assessing the Susceptibility of GDP Production to a Shift in the Number of the Working-Age Population

2019 ◽  
pp. 80-86
Author(s):  
T. P. Skufina ◽  
S. V. Baranov
Keyword(s):  
Pension Reform ◽  
Fixed Capital ◽  
Economic Effects ◽  
Pension Scheme ◽  
Retirement Age ◽  
Working Age ◽  
Working Age Population ◽  
Long Term Forecasting ◽  
The Impact

The presented study considers the susceptibility of gross domestic product (GDP) production to a shift in the number of the working-age population due to an increase in retirement age starting with 2019.Aim. The study aims to examine the quantitative assessments of GDP production in Russia with allowance for the changes in the number of the working-age population due to an increase in the actual retirement age.Tasks. The authors forecast the number of the working-age population with allowance for an increase in the retirement age; develop a model to establish a correlation between the number of the workingage population, investment in fixed capital, and GDP production; quantify the impact of the shift in the number of the working-age population on GDP production in Russia. Methods. This study is based on the results of modeling and long-term forecasting.Results. An economic-mathematical model to establish a correlation between the number of the working-age population, investment in fixed capital, and GDP production is presented. To specify the economic effects of a shift in the number of the working-age population due to an increase in the retirement age, Russia’s GDP production is forecasted for the “old” and “new” (increased retirement age) pension scheme. The forecast is provided for three variants of the number of the working-age population.Conclusions. It is found that with the “old” pension scheme with a lower retirement age GDP production across all three variants will decrease by 2036 compared to 2017. With regard to the “new” scheme that increases the retirement age, it is concluded that an increase in the retirement age is a factor that facilitates GDP production. However, its effect on economic growth will be insignificant.

Ohio and California vote on generous old-age pension scheme

1939 ◽  
Vol 28 (11) ◽  
pp. 807-809
Author(s):  
Wade S. Smith
Keyword(s):  
Old Age ◽  
Pension Scheme

The transition to a multi-pillar pension system: the inherent socio-economic anomaly

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ishay Wolf ◽  
Jose Maria Caridad y Ocerin
Keyword(s):  
Income Inequality ◽  
Old Age ◽  
Pension System ◽  
Economic Loss ◽  
Pension Scheme ◽  
Total Contribution ◽  
Content Type ◽  
Pension Systems ◽  
High Earning ◽  
Minimum Pension

Purpose This paper aims to analytically show that in an over-lapping-generation (OLG) model, low earning cohorts bear unwanted risk and absorb higher economic cost than high earning cohorts do. Design/methodology/approach This paper aims to consider the individual's risk appetite, using a simple utility function, based on consumptions and discount rates in each period. This paper calibrates the model according to teh Israeli pension system as a representative of a small open developed organization for economic cooperation and development country. Israel is considered as unique case study in the pension landscape, as it implements almost pure defined contribution pension scheme with continuous trend of pension market capitalization (Giorno and Jacques, 2016). Hence, this study finds Israel suitable for examining the theoretical mix of pension scheme. That model enables exploring combined solutions for adequate old age benefits, involving the first and the second pension pillars, under fiscal constraints. Findings It comes out that for risk-averse individuals, the optimal degree of funding is negatively correlated to asset returns' volatility and positively correlated to earning decile level. The neglect of risk and individual's current earning level will thus overstate the contribution level and funded percentage from total contributions. Moreover, even in an economy with minimum government intervention, and highly developed private pension fund with high average of rate of return, the authors find it is optimal that the pension system contains a sizeable unfunded pillar. This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. Practical implications The model presented in this paper could be implemented in countries with mix pension systems, as an alternative to public social transfers or means tested, alleviating poverty and inequality in old age. Additionally, this model could raise the public awareness of the financial sustainability of the unfunded pay-as-you-go pillar to diversify financial risk in pension systems, especially for low earning cohort in society. Social implications One area of research that is particularly relevant in this context concerns the issue of alleviating poverty and income inequality. It is often stressed that the prevention of old age poverty is among the central targets of well-designed pension system (Holzmann and Hinz, 2005). The conceptualization of minimum pension guarantee used in this composition allows to clearly capturing the notion of such a poverty and social targets as an integral part of the pension system rolls. Originality/value This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. That comes to realize through the level of total contribution rates and funded share that are generally optimal for high earning cohorts but not for low earning cohorts. This paper identifies that the effect of anomaly is most significant in a market characterized with high income-inequality level. This paper finds that imposing intra-generational risk sharing instrument in the form of minimum pension guarantee can re-balance pension design among different earning cohorts. This solution demonstrates balancing effect on the entire economy.

SOCIO-ECONOMIC EMPOWERMENT OF WOMEN THROUGH MICRO CREDIT: AN EMPIRICAL STUDY

2021 ◽  
pp. 58-60
Author(s):  
T. Indumathi ◽  
G. Savaraiah
Keyword(s):  
Rural Women ◽  
Poverty Reduction ◽  
Rural Poverty ◽  
Poverty Line ◽  
Economic Empowerment ◽  
Political Empowerment ◽  
The Poor ◽  
The Government ◽  
The Impact ◽  
Micro Credit

The World Bank's Andhra Pradesh Rural Poverty Reduction Project supports the self helf groups of the women members. It promotes women's social, economic, legal and political empowerment to reduce poverty among the poor and the poorest of the poor. The important object of this article is to examine the impact of micronance on the socio economic empowerment of the rural women supported by the national reputed NGO- Rashtriya Seva Samithi (RASS). 184 women members of the SHGs promoted by Rasthriya Seva Samathi (RASS) an NGO which located in Tirupati town. 184 samples are selected randomly from 15 SHGs scattered throughout the Tirupati rural mandal (Taluk) from the area of the study have been considered to conduct the present research study. The study reveals that 87.71 percent of the sample women were below the poverty line before joining the SHGs. As a result of SHG, about 40 percent of the sample women crossed the poverty line. The highest intensive value indicates that more women have participated in social agitations for the welfare of the children and the society. The second highest intensity reveals that considerable numbers of women of SHGs have participated in the government sponsored schemes. The 1st point secured 3rd rank with total intensity value of 605 which status that the micro credit has resulted in increased social status and empowerment.

scholarly journals The Impact of Integrated Management for Salt Tolerant Forage Production on Small Farmers Poverty Egypt Case Study (Sahl El-Tina)

2016 ◽  
Vol 4 (10) ◽  
pp. 825
Author(s):  
Sherine Fathy Mansour ◽  
Dalia Elsaid Abozaid
Keyword(s):  
Poverty Reduction ◽  
Integrated Management ◽  
Poverty Line ◽  
Policy Instrument ◽  
Small Farmers ◽  
Forage Production ◽  
Capita Expenditure ◽  
Farming Household ◽  
Per Capita ◽  
The Impact

This study examines the impact of New Integrated Management Package (IMP) adoption on income and poverty among fodder farming household in Sahl El-Tina. The IMP such as Rate, time, and methods of nitrogen fertilization and other fertilization, Leaching requirements for some crops, Intercropping system, Use of suitable crop genotype/variety, Use of modern irrigation systems or modified systems to save water, date, rate and method of planting. The study aims mainly to improve the lives of small farmers through the level of dissemination and application of cultivation techniques forage crops tolerant to salinity through develop and disseminate technologies packages of forage production. And reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household. It used instrumental variables (IV)-based estimator to estimate the Local Average Treatment Effect (LATE) of adoption of IMP on income and poverty reduction, using cross-sectional data of 200 farmers from Shal El-Tina. The findings reveal a robust positive and significant impact of IMP adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. Specifically, the empirical results suggest that adoption of IMP raises household per capita expenditure and income by an average of 529.27$ and 1371$ in Shal El-Tina per cropping season respectively, thereby reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household, although complementary measures are also needed. The incidence of poverty was higher among non-IMP adopters (55.2%) than IMP adopters (49.5%). In addition, both the depth and severity of poverty were also higher (20.85% and 15.42%) among non-adopters than the adopters (18.48% and 9.88%). All three poverty measures indicate that poverty was more prevalent and severe among non-adopters compared to adopters.

scholarly journals Poverty Eradication in Nigeria: A Focus on National Poverty Eradication Programme in Abia State, 2001- 2013

2018 ◽  
Vol 14 (5) ◽  
pp. 105
Author(s):  
Greene Ifeanyi Eleagu
Keyword(s):  
Poverty Reduction ◽  
Youth Unemployment ◽  
Poverty Line ◽  
Poverty Eradication ◽  
Eradication Programme ◽  
Financial Flows ◽  
Long Time ◽  
Broad Objective ◽  
The Impact ◽  
Huge Challenge

Poverty has been a huge challenge to Nigeria for a long time as majority of Nigerians live below poverty line. Successive civilian and military governments in Nigeria agreed on the need to eradicate or alleviate this ugly situation. In an attempt to ameliorate the situation, they introduced a number of schemes and programmes. The apparent failure of the various schemes and programmes and the resultant citizen discontent led to the creation of the National Poverty Eradication Programme, NAPEP, in all the states of the federation and the Federal Capital Territory. The broad objective of the study was to empirically evaluate the impact of NAPEP towards poverty eradication in Abia state, through the provision of youth employment. The structuralfunctionalist theory was adopted with an interrogation of relevant documents on financial flows, projects and programmes. The findings suggest that youth unemployment was pervasive. Again, the poverty reduction or alleviation efforts were fraught with corruption. To correct these, the work recommended disbursing monies to beneficiaries through banks. It also suggested, among others, that future efforts should be rural-centred, instead of urban-centred.

scholarly journals Subjectively perceived change in consumption along the living standards in old ages

2021 ◽  
Vol 55 (Különszám 2) ◽  
pp. 21-31
Author(s):  
Réka Hegedüs ◽  
Klaudia Rádóczy
Keyword(s):  
Human Resource Development ◽  
Old Age ◽  
Financial Management ◽  
Cluster Formation ◽  
The Elderly ◽  
Pension Scheme ◽  
Age Group ◽  
Elderly Age ◽  
New Findings ◽  
Financial Awareness

THE AIMS OF THE PAPER The aim of our research is to provide a picture of the conditions for providing the income background necessary for old age, the spending habits of the 50 plus age group, and to illustrate how the old ages goup of our survey, the elderly age group we survey perceives changes in their spending in the last 10-year. METHODOLOGY We used a representative personal survey with 500 Hungarian people. This survey was made in February 2020 on a targeted sample of the Hungarian population aged 50-70. In the analysis method, we used cluster formation, because we tried to identify groups showing different consumption changes based on the consumption categories of the Hungarian Central Statistical Office. MOST IMPORTANT RESULTS, NEW FINDINGS The results show that the people who participated in the survey had little perception of a change in their spending compared to their life 10 years before. On the other hand, our retirement income in old age may lag far behind the income in active, working years, so we can assume that if the significant decline in income did not affect consumption patterns, old-age income may be supplemented by savings in old age. EMPIRICAL IMPLICATIONS OF THE RESEARCH The clusters that we made shows well that the spendings of the 50-plus age group are also significant for the economy as a whole. The types of their expenditures is diverse and there is a lot of items that they would not necessarily be able to afford from an average income funded by the pension scheme. The characteristics of the clusters also show that there is a positive relationship between financial awareness (planning spending, exploring sales) and age. In our oppinion this is the reason why financial awareness education, the communications about this is very important. The financial management of households can be incorporated into the education of children from an early age. Acknowledgments: This research was partially supported by the Human Resource Development Operational Programme, grant No.: EFOP-3.6.1-16-2016-00004 “Comprehensive developments at the University of Pécs for the implementation of intelligent specialization”

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