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The Chilean model
Author(s) -
Piñera José
Publication year - 1998
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00071
Subject(s) - pension , productivity , pension system , government (linguistics) , economics , capital (architecture) , property rights , labour economics , private sector , business , economic growth , finance , geography , linguistics , philosophy , archaeology , microeconomics
In 1981, Chile replaced its government‐run pay‐as‐you‐go pension system with a national system of individual Pension Savings Accounts managed by the private sector. The new system has contributed to the increase in the country's savings rate, the productivity of capital and the rate of economic growth. More important, Chilean workers now have property rights over their own pension contributions and enjoy much higher pensions than under the old system.