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We analyze dynamic incentives in pension systems created by the use of a small set of final years of earnings to compute benefits. Using social security records and household surveys from Uruguay, we show that self-employed workers and some employees of small firms respond to these incentives by increasing reported earnings in the benefit calculation window. We find evidence that suggests that these responses are explained by changes in earnings reporting and not in total earnings or labor supply. Backof-the-envelope calculations indicate that this behavior increases the cost of pensions by about 0.2% of the GDP.

Recent research suggests that parental job loss has negative effects on children's outcomes, including their academic achievement and long-run educational and labor market outcomes. In this paper w...

There is partial evidence that suggests that adolescences living in rural aereas in Uruguay enjoy fewer opportunities than those living in urban aereas. In this paper we aim to provide a well-being comparison of adolescent living in rural and urban areas in Uruguay. The analytical framework in based on Capability Approach developed by Sen (1992) and Nussbaum (2001). We follow the methodological recommendations proposed by Alkire & Foster (2007). In sharp contrast in the conclusions from the country's official income-based poverty measure, which acknowledges lower poverty levels in rural areas, our results shows that youngsters living in rural aereas live in worse conditions than urban ones.