Daniela Horta Sáenz*, Santiago Lopez**

phd seminar
à distance

Daniela Horta Sáenz*, Santiago Lopez**

AMSE
Conflict and educational mobility: Evidence from Colombia*
Contribution versus redistribution: Mandatory pensions and inequality**
Date(s)
Mardi 25 mai 2021| 11:00 - 12:15
Contact(s)

Anushka Chawla : anushka.chawla[at]univ-amu.fr
Kenza Elass : kenza.elass[at]univ-amu.fr
Carolina Ulloa Suarez : carolina.ulloa-suarez[at]univ-amu.fr

Résumé

*This paper examines how individuals' exposure to armed conflict has impacted educational mobility in Colombia from 2014 to 2018. Using a unique database combining a household survey and municipal information obtained from the Single Registry of Victims, we find that the Colombian armed conflict has limited the intergenerational transmission of parents' education to children, especially for highly educated parents. This weakening of the parent-child link is affected the most due to early-life exposure to conflict. Thus, our results suggest that armed conflict increases the likelihood of downward mobility while decreasing the chances of climbing the social ladder through education.

**Mandatory pension schemes have two key features: inter-temporal income smoothing and within-cohort redistribution. This paper studies the effect of inequality and altruism in the retirement structure and its consequences on private savings. We introduce a two-dimension probabilistic voting model where agents vote over the contribution and the redistributive degree of the pension scheme and choose their savings accordingly. In an economy with two income groups, pension contributions decrease overall savings while redistribution incentives high-income agents to save. In the absence of liquidity constraints, agents only consider the redistributive power of the system measured by the product of the contribution and redistributive degree. Inequality enlarges the gains from a redistributive pension and therefore increases this product. Liquidity constraints for the low-income class set an upper bound to contributions. Hence, higher inequality decreases contributions while increasing the redistributive degree of pensions. Altruism towards the low-income class will weaken the effect of inequality. These findings are consistent with data: countries with lower public expenditures in their mandatory retirement schemes are associated with higher levels of intragenerational redistribution, higher inequality, and the presence of private pensions.

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