June 2025

Optimal Income Redistribution

By Pavel Brendler, Eva Carceles-Poveda & Arpad Abraham We study whether a redesign of the social security and income tax-and-transfer systems can deliver significant welfare gains. Our rich quantitative model features both realistic inequality over the life-cycle and the key main channels through which redistributive policies can distort aggregate allocations. We find that there are two distinct ways to achieve significant welfare gains with joint policy reforms. The first prioritizes reducing distortions through a regressive pension system, resulting in higher...

Flexible Retirement and Optimal Taxation

By Abdoulaye Ndiaye & Zhixiu Yu Raising the retirement age is a common policy response when social security schemes face fiscal pressures. We develop and estimate a dynamic life cycle model to study optimal retirement and tax policy when individuals face health shocks and income risk and make endogenous retirement decisions. The model incorporates key features of Social Security, Medicare, income taxation, and savings incentives and distinguishes three channels through which health affects retirement: nonconvexities in labor supply due to...

The Future of Financial Inclusion: Fintech, Microfinance, and Alternative Banking Models

By Selina Zhan Financial literacy refers to the ability to make informed financial decisions through acquiring relevant knowledge and skills such as investing, budgeting, and asset management. Individual financial literacy is crucial as many governments around the world are unreliable when it comes to providing adequate and stable financial support to their civilians. Additionally, as institutions become more and more exclusive with their increasingly complex products, the need for financial literacy grows, especially as the cost of retirement rises each...

Los Sistemas de Pensiones en América Latina: Aportes para el debate de los trabajadores

Por Soledad Giudice, Aníbal Peluffo & Natalia Otero Pensar y debatir sobre la etapa de retiro es un tema que siempre ha sido complicado para los trabajadores y los sindicatos. Este material pretende ser un aporte para el debate a partir de un análisis sencillo y comparaciones claras que brindan un panorama sobre los sistemas de pensiones de la región. La discusión acerca de los recursos que la sociedad destina a la etapa de retiro de las personas es parte fundamental de...

Sistemas Previsionales con Enfoque de Género en América Latina y el Caribe: Una Cuestión de Igualdad

Por Sergio Carpenter, Carlos Contreras Cruz, Lourdes Jiménez Brito, Isalia Nava Bolaños & Berenice Ramírez López  Estudiar sistemas previsionales desde el enfoque de género supone abordar una cuestión de gran relevancia para contribuir a lograr la igualdad entre hombres y mujeres en la región. Y es que las mujeres se enfrentan a múltiples y diversas desigualdades a lo largo del ciclo vital. No debe sorprender que se enfrenten en mayor medida que los hombres al riesgo de sufrir pobreza por...

La revolución de los derechos LGBT en Colombia (1992-2022): Redes de movilización legal y jueces constitucionales

Por Juliana Jaramillo Jaramillo  En las últimas tres décadas, Colombia experimentó una intensa y exitosa judicialización a favor de los derechos de la población LGBT. Durante este tiempo, un conjunto amplio de derechos a favor de la igualdad legal de las personas LGBT fueron reconocidos por la Corte Constitucional colombiana a través de numerosas sentencias (más de cien entre 1992 y 2022). Esta investigación se centra en los actores que estuvieron detrás de esta revolución de los derechos. Aunque los...

Las cortes supremas y los derechos LGBT en América Latina

Por Ericka López Sánchez Derivado del mapeo del reconocimiento de derechos nacionales a favor de las personas LGBT en América Latina y de la identificación de los mecanismos de aprobación que se han seguido desde el año 2002 hasta el 2021 para el Observatorio de Reformas Políticas en América Latina (REFPOL), se presenta un análisis del papel que han tenido las cortes supremas en la región sobre el reconocimiento de estos derechos a partir del litigio estratégico a causa...

May 2025

Eyes on delivery – improving implementation for effective social protection for all

By Abhijit V. Banerjee Effective implementation is the missing link in the drive toward inclusive, reliable social protection. In recent decades, social protection systems have expanded rapidly across the developing world. Today, more than 2.5 billion people benefit from programmes like cash transfers, food subsidies, and social pensions. Yet despite this progress, the goal of social protection for all remains out of reach. Too many eligible people still slip through the cracks—excluded by complex procedures, poor targeting, or weak delivery...

Annual survey on financial incentives for retirement savings. Country profiles 2024

By Organisation for Economic Co-operation and Development Countries provide financial incentives to encourage individuals to save for retirement in asset-backed pension plans. Financial incentives for retirement savings can take the form of tax incentives, which are indirect subsidies through the tax code, or non-tax incentives, which are direct government payments into pension accounts. This annual survey provides an overview of the tax treatment of retirement savings and covers non-tax incentives to promote retirement savings in OECD countries and four accession...

Income and Wealth Inequality in the United States: An Update Including the 2022 Wave

By Moritz Kuhn & José-Victor Ríos-Rull We provide a comprehensive overview of earnings, income and wealth inequality based on the 2022 Survey of Consumer Finances from the United States. We document the current state of inequality and its evolution over the last three decades organizing the data along key demographic dimensions including age, education, and marital status. The 2022 data reveal that wealth remains highly concentrated, with the top 1% holding 35% of total wealth down from a peak of...