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The Gender Impact of Social Security Reform$
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Estelle James, Alejandra Edwards, and Rebeca Wong

Print publication date: 2008

Print ISBN-13: 9780226392004

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226392028.001.0001

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Mexico

Mexico

Chapter:
(p.128) Chapter Six Mexico
Source:
The Gender Impact of Social Security Reform
Author(s):

Estelle James

Alejandra Cox Edwards

Rebeca Wong

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226392028.003.0007

In 1997, Mexico replaced its old, traditional, pay-as-you-go defined benefit system with a multipillar system that included a funded defined contribution component. This chapter analyzes how women fared in this process. It shows that the defined contribution plans in the new systems have subtle features that favor women, such as the heavier weight given to earnings early in adulthood. These are reinforced by the joint annuity, which transfers income from husbands to wives, and the public benefit, the social quote (SQ), which redistributes to low earners. As the lowest earners in each education category, women will inevitably benefit from such redistributions.

Keywords:   Mexico, pension reform, pension policy, pay-as-you-go defined benefit system, multipillar system, defined contribution plans, social quote, women, joint annuity, public benefit

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