Participation in Pension Programs in Low and Middle Income Countries

By John Giles, Clement Joubert & Tomoaki Tanaka Low- and middle-income countries are aging rapidly but stagnation of growth in participation in pension programs, due to widespread informal employment, presents a major fiscal challenge. Some claim that improving the design of pension program rules can encourage more pension contributions, while others push for universal non-contributory pensions. This paper reviews the recent academic literature on the determinants of active participation in pension systems in high-informality settings. An emerging body of evidence...