Chapter

Mexico

Estelle James, Alejandra Cox Edwards and Rebeca Wong

in The Gender Impact of Social Security Reform

Published by University of Chicago Press

Published in print August 2008 | ISBN: 9780226392004
Published online February 2013 | e-ISBN: 9780226392028 | DOI: http://dx.doi.org/10.7208/chicago/9780226392028.003.0007
Mexico

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In 1997, Mexico replaced its old, traditional, pay-as-you-go defined benefit system with a multipillar system that included a funded defined contribution component. This chapter analyzes how women fared in this process. It shows that the defined contribution plans in the new systems have subtle features that favor women, such as the heavier weight given to earnings early in adulthood. These are reinforced by the joint annuity, which transfers income from husbands to wives, and the public benefit, the social quote (SQ), which redistributes to low earners. As the lowest earners in each education category, women will inevitably benefit from such redistributions.

Keywords: Mexico; pension reform; pension policy; pay-as-you-go defined benefit system; multipillar system; defined contribution plans; social quote; women; joint annuity; public benefit

Chapter.  13642 words.  Illustrated.

Subjects: Public Economics

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