Abstract

TRIBERTI, Giuliana  and  MASSA, Ricardo. Savings and collective behavioral patterns in Mexico’s pension system. Anál. econ. [online]. 2022, vol.37, n.94, pp.7-21.  Epub Apr 08, 2022. ISSN 2448-6655.  https://doi.org/10.24275/uam/azc/dcsh/ae/2022v37n94/triberti.

Countries like Mexico, with highly informal labor markets, could benefit from the identification of collective attitudes and behaviors towards saving. In that sense, the present work seeks to build on the Behavioral Life Cycle Theory (BLC) narrow/broad framing debate, pointing out asymmetric collective attitudes towards savings, depending on the formal or informal condition of agents in the labor market. Through an empirical strategy that focuses on data from the Mexican labor market and its pension system, the analysis employs time series techniques to study the collective relationship between two kinds of savings, voluntary and mandatory, and the distinction of the type of labor market participation. Results suggest that there is a short-run asymmetric relationship between informal and formal conditions with regards to the decision of modifying voluntary and mandatory saving schemes.

Keywords : Life Cycle Hypothesis; Savings; Informality; Time-Series Model; VAR Models; C32; D14; D15; E21; E26.