ABSTRACT
This article presents an analysis of pension coverage based on contribution density. This approach is justified by the fact that coverage rates do not give a clear indication of effective contribution and particularly cannot explain the low level of pensions in the private sector observed in many developing countries. After computing the contribution density of private sector workers in Tunisia, an econometric analysis based on administrative data identifies the determinants of this ratio. Results show that contribution density of the most vulnerable groups is very low compared to other workers. Women are more likely to contribute to the pension system and contribution density decreases with firms’ size.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 This ratio decreased from 9, 2 in 1985 to 4, 9 in 2009.
2 A person registered in a pension fund and who has contributed at least once.
3 CNRPS: Caisse nationale de retraite et prévoyance sociale created in 1976.
4 CNSS: Caisse nationale de sécurité sociale created in 1960.
5 Contribution is not validated if the wage is < (2/3) Minimum wage even if it is accepted.
6 The marginal effects in the table 6 are expressed in percentages and not in percentage points.
7 See Rijkers, Freund, and Nucifora (Citation2017) for an analysis on State capture by crony firms in Tunisia.
8 25, 75% represents the total contribution the rate.