This project will study how rules and regulations governing retirement savings and unemployment insuranceaffect incentives for savings in different kinds of assets (liquid and illiquid) as well as incentives for working.The project will develop and estimate a model of life-cycle savings decisions using Chilean data from theSocial Protection survey, which was administered in 2002, 2004, and 2006 combined with administrativedata on voluntary and involuntary pension contributions that go back to 1980. The model will incorporateuncertainty and relevant institutional features of the social security system, such as tax deferral, minimumpension, and mandatory contribution amounts to both the pension and unemployment insurance system. Itwill also examine how savings decisions relate to the financial literacy and demographic characteristics ofpension program affiliates.
