One of the most recurrent topics in social security in less developed economies is the coverage. Still, we believe there are many issues not fully understood. For example, what is the role of the contribution rates on formal market participation? What effects have had pension reform on participation rates? How the aggregate effects found for the whole economy change if we analyze subsectors, for example, different economic sectors or different working groups or enrolment by firm size? Is it really that economic growth is associated to higher participation rates? To what extend enforcement of affiliation by social security agencies increase enrolment? How all this factors interact to determine coverage?
The following figure exemplifies that answers to these questions are not straightforward. In this figure we plot coverage, contribution rates and GDP per capita, as a measure of economic development, for several Latin America countries. As can be seen, there is not a clear association between any of the variables involved.
Most of the CISS/CIESS research agenda in the following months will tackle these questions. Special focus will be given to the role of economic crises. Advances in the research will be post in this blog.
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