Economics, Population Dynamics, and Pensions: Model Application for the Mexican Case

Inclan Garza, R. (1999). Economics, Population Dynamics, and Pensions: Model Application for the Mexican Case. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-99-008

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Abstract

This paper analyzes the relation between population dynamics and the pension system in Mexico by applying an economic-demographic model in three economic scenarios related to the evolution of employment in the formal sector of the economy. The basic point which emerges is that, while rapid growth of employment in the formal sector increases the pension system's contribution base in the near term, it also increases demands upon the system in the long term.

Throughout this paper, the complex nature of the linkages between population dynamics, economic change, and the pension system are emphasized.

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