Can income security enhance growth in developing countries? : A study of the effects on economic growth of income support programs for the unemployed and elderly in developing countries

Sammanfattning: This paper addresses the question if income security can enhance economic growth in developing countries? It takes its starting point in the income security problems of a developing country and summarizes evidence from published empirical research on formal income security mechanisms. We conclude that the findings on incomes security efficiency effects are ambiguous. A limited econometric study based on data from Chile is carried out with a regression showing that social securities total effect on economic growth is negative but more econometric research on total effect on growth are needed to give a definite answer.