Gender gaps in the chilean pension system Contribution probability and pension

Gender gaps in the chilean pension system Contribution probability and pension savings Paulina Granados, Fernanda Toledo and Ximena Quintanilla Superintendence of Pensions December 2023 Motivation • There is a broad consensus about the existence of gender gaps in the labor market. [...] • These gaps are transferred to the pension system, regardless of its design (DB, DC, notional, etc.) • In the case of the Chilean pension system, which is fully funded with defined contributions, the gender gaps in the labor market impact directly the self-financed pension benefits through: – Earnings gap – Work/out of work patterns which affect contributions patterns. [...] To analyse the gap on pension savings for different cohorts over time Methods and data • The analysis is focused on the differences between men and women in their probability of contribution and the evolution of accumulated pension savings. [...] • The differences in the probability of contribution is estimated through a logistic model and the differences in the accumulated balance is estimated through an ordinary least square regression. [...] Gaps in pension savings % Data Gender gaps in pension balance by age and cohorts • Following Deaton and Paxson (1994) and Deaton (1997), we decompose the total gap in age, cohorts, and time effects.