Authors

Angel Melguizo

  • Current position:
    Head of Latin American and Caribbean Unit, OECD Development Centre, France
  • Positions/functions as policy advisor:
    Head of the Latin American and Caribbean Unit, OECD Development Centre (2014–); Lead Specialist, Labor Markets and Pensions, Inter-American Development Bank (2012–2014); Advisor, Labor Markets, Pension, Immigration, Economic Bureau of the President, Spain (2007–2008)
  • Research interest:
    Fiscal policy, pensions, economic growth, development, Latin America, emerging economies
  • Website:
    https://ideas.repec.org/f/pme327.html
  • Affiliations:
    OECD Development Centre, France
  • Past positions:
    Instructor, World Economic Outlook, Université Paris X Nanterre, Master 1 Monnaie, Banque Finance, Assurance, and Master 1 Economie Appliquée, 2015; Lecturer, Economic Realities and Development in Latin America, Science-Po (IEP – Paris), Master in International Affairs, 2011; Associate, Center for Inter-American Policy & Research, Tulane University (2010–)
  • Qualifications:
    PhD Economics, Complutense University, 2006
  • Personal statement about IZA World of Labor:
    I am thrilled to be part of this initiative. We need projects that help connect the research to the actual policy making. I am confident World of Labor will consolidate as this tool in the area of labor markets, where many challenges are seen both in developed and emerging economies
  • Selected publications:
    • Better Pensions, Better Jobs Towards Universal Coverage in Latin America and the Caribbean. Washington DC: InterAmerican Development Bank, 2013 (with M. Bosch and C. Pages).
    • “Who bears labour taxes and social contributions? A meta-analysis approach.” SERIEs 4:3 (2013): 247–271 (with J. González-Páramo).
    • “Matching pension schemes in Colombia, Mexico and Peru: Experiences and prospects expand coverage?” In: Holzmann, R., R. Hinz, N. Takayama, and D. Tuesta (eds). Matching Defined Contributions Schemes: Role and Limits to Increase Coverage in Low and Middle Income Countries. Washington DC: The World Bank, 2012; pp. 193–213 (with L. Carranza and D. Tuesta).
    • “Moving from pay as you go to privately managed individual pension accounts: What have we learned after 25 years of the Chilean reform?” Pensions: An International Journal 14:1 (2009): 14–27 (with J. Vial).
    • “¿Quién soporta las cotizaciones sociales empresariales y la fiscalidad laboral? Una panorámica de la literatura empírica.” Hacienda Pública Española 188:1 (2009): 125–182.
  • Articles

Pensions, informality, and the emerging middle class

Getting the incentives right for firms and workers should be the priority in the labor formalization agenda

July 2015

10.15185/izawol.169 169

by Angel Melguizo Melguizo, A

A large share of the population in emerging market economies has no pension coverage, exposing them to the economic risks arising from socio-economic and individual shocks. This problem, which arises from having large informal (unregulated) sectors, affects not only poor workers, but as many as half the newly or nearly middle class in some emerging market economies. With very little social protection coverage today, these workers will also be vulnerable in the future unless tax, labor, and social policies change to encourage formalization. While formalization would require substantial resources in the short-term, it seems financially sustainable.