Next Generation of Individual Account Pension Reforms in Latin America

by Barbara E. Kritzer, Stephen J. Kay, and Tapen Sinha
Social Security Bulletin, Vol. 71 No. 1, 2011
Table equivalent for Chart 1. The informal sector and social security contribution rates in OECD countries, 1996
Country Informal sector as a percentage of the labor force Social security contribution as a percentage of wage
Greece 28.5 43.3
Italy 27.0 41.9
Spain 22.9 38.2
Belgium 21.9 36.0
Sweden 19.2 33.6
Norway 18.9 19.8
Denmark 18.3 9.0
Ireland 15.9 19.5
Canada 14.6 15.0
Germany 14.5 32.2
France 14.3 44.0
Netherlands 14.0 39.8
United Kingdom 13.1 21.4
United States 8.8 21.4
Austria 8.3 42.4
Switzerland 7.5 23.2
 
Table equivalent for Chart 2. The informal labor force in Latin America: 1990 compared with 2005
Country Proportion of informal labor force, 2005 Proportion of informal labor force, 1990
Argentina 42 45
Bolivia 71 60
Brazil 45 49
Chile 32 38
Costa Rica 40 37
Dom Rep 50 48
Ecuador 60 54
El Salvador 54 54
Guatemala 58 54
Honduras 60 53
Mexico 44 41
Panama 41 38
Paraguay 62 56
Peru 66 61
Uruguay 45 39
Venezuela 52 39
 
Table equivalent for Chart 3. Chile's return on equity for AFPs and banks, 1991–2004
Year Return on equity (percent)
AFPs Banks
1991 50.0 17.0
1992 28.0 18.0
1993 31.0 20.5
1994 20.0 19.5
1995 21.0 18.0
1996 17.0 17.5
1997 18.0 14.0
1998 20.0 12.0
1999 30.0 9.5
2000 31.0 13.0
2001 32.0 19.0
2002 27.0 17.0
2003 26.0 18.0
2004 25.0 18.0
 
Table equivalent for Chart 4. Mexico's return on equity for AFOREs and banks, 2000–2005
Year Return on equity (percent)
AFOREs Banks
2000 29.9 4.7
2001 41.3 7.9
2002 36.9 8.7
2003 39.3 13.2
2004 33.7 8.3
2005 32.3 16.9
 
Table equivalent for Chart 5. Profit differential and number of AFPs in Chile, 1992–2004
Year Difference in ROE (percent) Number of AFPs
1991 10.0 13.0
1992 10.0 17.0
1993 10.5 19.0
1994 0.5 21.0
1995 3.0 16.0
1996 -0.5 13.0
1997 4.0 13.0
1998 8.0 9.0
1999 20.5 8.0
2000 18.0 8.0
2001 13.0 8.0
2002 10.0 7.0
2003 8.0 6.0
2004 7.0 6.0
 
Table equivalent for Chart 6. Investment in government securities as a percentage of total pension fund investment, 2001 and 2008
Country 2001 2008
Bolivia 73.20 68.75
Colombia 48.67 48.35
Chile 35.02 14.30
El Salvador 79.51 76.60
Mexico 87.72 65.22
Peru 13.77 25.23
Uruguay 61.23 81.80
 
Table equivalent for Chart 7. Pension fund investment, by investment sector, 2009 (in percent)
Country State Corporate Financial Foreign
Bolivia 68.75 11.83 15.68 0
Colombia 48.35 20.82 19.36 9.38
Chile 14.30 26.89 30.15 28.50
El Salvador 76.60 0.79 17.55 3.63
Mexico 65.22 18.62 0 9.99
Peru 25.23 39.88 23.28 12.41
Uruguay 81.80 7.05 3.55 4.17
 
Table equivalent for Chart 8. Estimates of wage equation in Mexico, by sex and age
Age Men Women
20 4.826082 4.664291
21 4.844422 4.682631
22 4.862100 4.700309
23 4.879117 4.717326
24 4.895472 4.733681
25 4.911166 4.749375
26 4.926199 4.764408
27 4.940569 4.778779
28 4.954279 4.792488
29 4.967327 4.805536
30 4.979714 4.817923
31 4.991439 4.829648
32 5.002502 4.840711
33 5.012904 4.851113
34 5.022645 4.860854
35 5.031724 4.869933
36 5.040142 4.878351
37 5.047898 4.886107
38 5.054993 4.893202
39 5.061426 4.899636
40 5.067198 4.905407
41 5.072309 4.910518
42 5.076758 4.914967
43 5.080545 4.918754
44 5.083671 4.921880
45 5.086135 4.924345
46 5.087939 4.926148
47 5.089080 4.927289
48 5.089560 4.927769
49 5.089379 4.927588
50 5.088536 4.926745
51 5.087032 4.925241
52 5.084866 4.923075
53 5.082039 4.920248
54 5.078550 4.916759
55 5.074400 4.912609
56 5.069588 4.907798
57 5.064115 4.902324
58 5.057981 4.896190
59 5.051185 4.889394
60 5.043727 4.881936
61 5.035608 4.873817
62 5.026828 4.865037
63 5.017386 4.855595
64 5.007283 4.845492
65 4.996518 4.834727
 
Table equivalent for Chart 9. Evolution of income ratio of men and women in Mexico, by selected time period (in percent)
Time period W50/M50 W20/M20
August 1997 75.09 70.68
October 1997 74.48 91.99
December 1997 77.21 98.27
February 1998 76.19 98.45
April 1998 75.69 93.52
June 1998 75.35 92.07
August 1998 76.15 93.67
October 1998 77.07 92.64
December 1998 77.64 91.08
February 1999 76.55 90.43
April 1999 76.18 90.28
June 1999 76.08 86.87
August 1999 76.49 87.73
October 1999 76.98 84.80
December 1999 77.90 86.59
February 2000 76.80 87.54
April 2000 76.33 85.16
June 2000 77.52 85.13
August 2000 77.32 85.43
October 2000 78.45 83.95
December 2000 78.33 83.12
February 2001 77.56 82.35
April 2001 77.60 81.26
June 2001 77.58 81.69
August 2001 78.46 83.48
October 2001 78.65 81.07
December 2001 78.52 81.47
February 2002 79.35 80.11
April 2002 78.69 82.62
June 2002 78.36 82.21
August 2002 78.45 80.10
October 2002 79.10 80.64
December 2002 79.33 79.98
February 2003 79.48 78.07
April 2003 79.33 78.90
June 2003 79.87 77.70
August 2003 79.28 76.82
October 2003 80.21 75.44
December 2003 80.69 73.60
February 2004 79.94 74.64
April 2004 81.12 73.86
June 2004 80.55 73.83
August 2004 80.81 73.36
October 2004 81.44 74.00
December 2004 81.36 74.37
February 2004 80.85 75.46