Publications [#17441] of Charles M Becker

Journal Articles

1. K.H. Anderson, C.M. Becker, Post-Soviet Pension Systems, Retirement, and Elderly Poverty: Findings from the Kyrgyz Republic, -MOST: Economic Policy in Transitional Economies, vol. 9 no. 4 (Fall, 1999), pp. 459-78
   (last updated on 2003/12/30)

   Abstract:
   Throughout the former USSR, pension systems are in crisis. The rules governing Soviet pension systems, combined with a rapidly shrinking contribution base, have resulted in a high retirement age population per contributor dependency ratio. This dependency ratio has grown greatly since the collapse of the Soviet Union despite surging middle-aged and elderly mortality, and despite the fact that the post- World War II baby boom cohorts have yet to retire in large numbers.1 The liberal commitments of the Soviet welfare system have left its successor states with untenable obligations that in many cases cripple macroeconomic stabilization goals. At the same time, very little is known about the effectiveness of (post) Soviet pension systems in combating elderly poverty, or of the impact of pension eligibility on the decision to work. Given that public pensions are among the most important state expenditures in most newly independent states, this absence of knowledge of its effectiveness and consequences is striking. Worse yet, most newly independent states are undergoing or considering radical changes in their pension systems without fully grasping the social role played by the current structure. This is not to say that post-Soviet governments do not have strong beliefs about their pension funds; indeed, most see public pensions as an essential safety net for the vast majority of recipients and are, therefore, deeply reluctant to make changes even in the face of fiscal disaster. This paper addresses some of the issues raised above. Using data from household surveys of the Kyrgyz Republic, we explore determinants of pension receipt and wage employment as well as poverty and extreme poverty status. Data are taken from surveys in late 1993 (a period of extreme economic dislocation) and late 1996 (a time of nascent recovery). While the surveys are not perfectly comparable, their contrast also enables us to make some tentative conclusions about recovery in the post-Soviet era. Section 2 briefly discusses patterns of the Kyrgyz economy and the public pension system. We then turn to a description of the data in Section 3, and provide an overview of pensioner characteristics. Section 4 presents multivariate models of pension receipt and wage employment. The determinants of poverty status in 1993 and 1996 are contrasted in Section 5, while Section 6 offers concluding remarks.