TY - JOUR
T1 - Ethnic differences and preference heterogeneity
T2 - assessing social pensions in Peru
AU - Decancq, Koen
AU - Olivera, Javier
AU - Schokkaert, Erik
N1 - Publisher Copyright:
© 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2025
Y1 - 2025
N2 - We examine the impact of the non-contributory social pension program (Pension 65) in Peru, highlighting its varying effects on the three main ethnic groups: Mestizo, Quechua, and Aymara. Notably, Aymara beneficiaries have experienced greater improvements in health outcomes compared to other Peruvians. To account for these ethnic differences when evaluating policy programs, it is essential to use a welfare criterion that reflects preference heterogeneity. We propose a natural criterion: a program benefits a recipient if it lifts them to a higher indifference curve. We contrast this approach with an alternative that uses self-reported subjective well-being to evaluate a policy program. Through a panel life satisfaction regression, we find evidence of preference heterogeneity between the Aymara and other ethnic groups, consistent with the observed differences. Lastly, we explore why, contrary to simple intuition, not all beneficiaries reach a higher indifference curve.
AB - We examine the impact of the non-contributory social pension program (Pension 65) in Peru, highlighting its varying effects on the three main ethnic groups: Mestizo, Quechua, and Aymara. Notably, Aymara beneficiaries have experienced greater improvements in health outcomes compared to other Peruvians. To account for these ethnic differences when evaluating policy programs, it is essential to use a welfare criterion that reflects preference heterogeneity. We propose a natural criterion: a program benefits a recipient if it lifts them to a higher indifference curve. We contrast this approach with an alternative that uses self-reported subjective well-being to evaluate a policy program. Through a panel life satisfaction regression, we find evidence of preference heterogeneity between the Aymara and other ethnic groups, consistent with the observed differences. Lastly, we explore why, contrary to simple intuition, not all beneficiaries reach a higher indifference curve.
KW - Ethnicity
KW - pensions
KW - Peru
KW - policy evaluation
KW - preference heterogeneity
UR - http://www.scopus.com/inward/record.url?scp=85213727440&partnerID=8YFLogxK
U2 - 10.1080/21665095.2024.2443233
DO - 10.1080/21665095.2024.2443233
M3 - Article
AN - SCOPUS:85213727440
SN - 2166-5095
VL - 12
JO - Development Studies Research
JF - Development Studies Research
IS - 1
M1 - 2443233
ER -