Data on Intergenerational Reallocations in Chile: an update

Jorge BravoEconomic Commission for Latin America and the

Caribbean (ECLAC)

2nd Meeting of the Working Group on Macroeconomic Aspects of Intergenerational Transfers

Berkeley, California, 14 & 15 January, 2005

Item Series available Source Characteristics / comments Population and demographic variables

Estimates 1950-2000 and projections 2000-2050

National Statistical Institute (INE), based on complete vital statistics and censuses

For 5-year age groups, at 5-year intervals

National income statistics

Starting 1950 Central Bank of Chile Annual GDP and main aggregate components of national income

Labor force, employment and earnings

Labor force monthly series from 1986;

INE, from household surveys since 1986. CASEN surveys, selected years since 1987.

Annually, age and sex disaggregation possible, as well other by other variables (see below).

Individual and household consumption

1987/88 and 1996/97 INE, Household budget survey Detailed budget and consumption of households

Education expenditures, including public sector transfers

Starting 1986 CASEN surveys, INE surveys, and Education and Finance ministry data

Published tables and databases

School Enrollment rates

Starting 1986 CASEN surveys, INE surveys, and Education and Finance ministry data

Published tables and databases

Health expenditures Aggregate series starting 1980, public-private distinction from 1984, age breakdown from 1990.

National Health Fund (FONASA), Superintendency of Private Health Institutions (ISAPRES), and CASEN surveys

Mostly published tables* on the basis of official registers, except for the database of the CASEN survey databases.

Health services coverage (public, private)

Public-private coverage since 1982

Planning Ministry, on the basis of CASEN surveys

Correlation with age and income possible starting 1990, using CASEN surveys

Pension expenditures Aggregates for selected years since 1950; private sector annual series since 1983

Marcel and Arenas de Mesa (1991)**; private sector: Superintendency of Pension Fund Management Companies (SAFP); public sector: Labor Ministry statistics

Tables available in print and on electronic files; no public-use databases.

Pension system coverage (public, private)

Aggregate annual series since 1935; Age & sex breakdown for selected years since 1982

Arenas de Mesa (2000)***, based on official statistics and SAFP for funded private-sector affiliates and pensioners, and Labor Ministry for previous system

Tables available in print and on electronic files; no public-use databases.

Project on Intergenerational TransfersData sources for CHILE

* Several of these appear in Titelman, D. (2000) “Reformas al sistema de salud en Chile: Desafíos pendientes” CEPAL Serie Financiamiento del Desarrollo No. 105, Santiago, Chile. **Marcel and Arenas de Mesa (1991) “Reformas a la seguridad Social en Chile”, Monografía No. 5. Banco Interamericano de Desarrollo *** Arenas de Mesa, A. “Cobertura previsional en Chile” CEPAL Serie Financiamiento del Desarrollo No. 105, Santiago, Chile. 

Review by January, 2004

Data on Income by source: a first approximation from the CASEN survey

• Labor income (Yl) earnings from main and secondary jobs, including bonuses and in-kind payments

• Income from Capital and credit (YK) rental income from real estate, equipment, profits, capital gains, interest, private pensions

• Income from transfers (YT) a) public: Educational and other subsidies, unemployment compensation, maternal subsidies, social assistance pensions (disability, old-age); b) private: donations received, child support

Income by sourceChile, 2000

0

100,000

200,000

300,000

400,000

500,000

600,000

10 20 30 40 50 60 70 80 90 100

Age

mil

lio

ns

of

pes

os

Yl

Yk

Yt

Source: CASEN survey, 2000

Per capita income by sourceChile 2000

0

50,000

100,000

150,000

200,000

250,000

300,000

0 10 20 30 40 50 60 70 80 90 100

age

inco

me

(mil

lio

ns

of

pes

os)

Yl

Yk

Yt

Source: CASEN survey, 2000

Data on taxes by type: an ad-hoc approximation

• There’s no single/comprehensive source for tax data (no survey collects it at all)

• The internal revenue service (SII) has detailed data of the central government treasury proceeds only (direct, indirect, and “territorial” taxes)

• The SII does not compile data on social security contributions, nor on taxes levied by municipalities (e.g., car circulation fees)

Income taxes, by age and sexChile, 2003

0

20,000

40,000

60,000

80,000

100,000

120,000

15 20 25 30 35 40 45 50 55 60 65 70 75 80

Age

tax

es

(m

illio

ns

of

pe

so

s)

women

men

both sexes

Source: Servicio de Impuestos Internos (SII)

Taxes on labor earnings, by age and sexChile, 2003

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

15 20 25 30 35 40 45 50 55 60 65 70 75 80

Age

tax

es

(m

illio

ns

of

pe

so

s)

women

men

both sexes

Source: Servicio de Impuestos Internos (SII)

Data on taxes by type: an ad-hoc approximation

• Problem: about 70% of total taxes are indirect (AVT, specific taxes), but these the SII (of course) does not register in the name of final payer/consumer no age profile

• Possible solution: use age profile of overall and specific consumption (from the household budget survey) and match it to AVT and specific tax totals (from the SII).

Major items by component of accounts

• Lifecycle “flows” account/deficit

Aggregate lifecycle deficit

Capital reallocations (rK –IK)

Credit reallocations (rM –IM) less clear

Net public transfers (g+ - g

)

Net private transfers (f+ - f

) less clear

Major items by component of accounts

• Wealth “stocks” account

Capital stock (K)

Property and credit stock (M) less clear

Net public transfers PV(g+ - g

)

Net private transfers PV(f+ - f

) less clear

Complementarity with on-going lines of work

• Linkage with ECLAC substantive document on “Social Protection”, centered on policy issues, due by mid-2005

• Some relevant policy questions to be addressed: labor market problems including unemployment, current health and future pension reform, social protection policies centered on the family

• Possible complementation with other projects, e.g., small component of ECLAC-Government of France cooperation program