arbiter
JournalsAccount

Impacts of an employer’s contributory pillar: evidence from Chile

Marcela Parada‐Contzen et al.

Journal of Pension Economics and Finance2025https://doi.org/10.1017/s1474747224000131article
AJG 2ABDC B
Weight
0.50

Abstract

We estimate labor demand elasticities to predict the employment effects of an employer’s contributory pillar in Chile’s pension system. The Chilean system has been a model for reform in many countries worldwide. We find labor demand to be inelastic, with baseline estimates ranging from −0.27 to −0.91. We predict that the implementation of an employer contributory pillar with contribution rates of 1% increase would increase unemployment rates by 0.20 to 0.71 percentage points (pp) from a baseline unemployment of 6.51%. Our results show sizable differences in labor demand elasticities and employment impacts by industry and workforce characteristics. Simulations imply implementing a uniform employer contributory pillar would especially reduce employment for low-skilled workers and workers in industries where labor is easily substitutable.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1017/s1474747224000131

Or copy a formatted citation

@article{marcela2025,
  title        = {{Impacts of an employer’s contributory pillar: evidence from Chile}},
  author       = {Marcela Parada‐Contzen et al.},
  journal      = {Journal of Pension Economics and Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1017/s1474747224000131},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Impacts of an employer’s contributory pillar: evidence from Chile

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.