Contributory Social Security Systems: Equity as a pendent task. Discussions through the cases of Argentina, Paraguay an Dominican Republic

Abstract

This paper studies the issues of social security as it evaluates equity resulting from the type of access and distribution mechanisms on which the social security system is structured. It reflects on the potential of universalist access to achieve the right to protection in old age with inclusion and equity, as opposed to the contributory models that dominate the region. It is considered a system based on civil rights and considering the human rights approach. Indicators are proposed from household surveys, to analyse, equity gaps of pension systems by gender and socioeconomic status, according to different qualities of protection for retirees and pensioners, as well as differential concentration of pension resources resulting from combining certain levels of coverage and pension benefits in each group. From the observation of three Latin American countries, Argentina, Paraguay and Dominican Republic some of the main constraints and potentials of pension systems in the region are detected. The results are conclusive about a strong inequitable socioeconomic and gender pattern as a result of implementation of contributory access mechanisms to protection, and actuarial criteria – or income-replacement rates, to set amounts of pension benefits. Meanwhile, the mechanisms of universal access and distribution of non-contributory show their ability to alter this pattern in favour of greater equity.