Data on Intergenerational Reallocations in Chile: an update

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Data on Intergenerational Reallocations in Chile
an update

• Jorge Bravo
• Economic 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

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Project on Intergenerational Transfers Data
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
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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

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Data on taxes by type an ad-hoc approximation

• Theres 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)

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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).

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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

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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

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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