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Social Security Coverage in Chile, 1990-2001
Salvador Valdes-Prieto, The World Bank, 1/1/2004

Economic policies, other than pension policy, have a substantial influence on coverage. It is frequently the case that labor and social legislation that is not related to pensions, such as minimum wages, mandatory severance payments, collective bargaining rules, and mandates to provide health insurance (or to contribute to it) are imposed on the same workers who are covered by mandatory old age pension plans. Thus, changes in labor and social legislation that impose costs and benefits on these aspects of participation in covered labor markets may induce some workers to leave or join these markets, which will also affect the coverage of the pension plan.

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