Abstract
BackgroundIn 2007, a non-contributory pension program was launched in rural areas of Mexico. The program consisted in a non-conditional cash transfer of US$40 monthly to all older adults (OA) aged 70 and over. We evaluate the effect of the program on mental well-being of its beneficiaries.Methods and FindingsQuantitative and qualitative methods were used. For the quantitative component, we used the selection criteria established by the program (age and locality size) to form the Intervention (OA aged 70–74 residing in rural localities, <2500 inhabitants) and Control groups (OA aged 70–74, in localities with 2501–2700 inhabitants). Baseline data collection was conducted in 2007 where 5,465 OA were interviewed. The follow-up survey was conducted in 2008, and it was possible to interview 5,270 OA, with a response rate of 96%. A difference-in-difference linear probability model with individual fixed effect was used to estimate the impact of the program on mental well-being indicators. In 2009 a qualitative component was designed to explore possible causal pathways of such effect.ResultsAfter a year of exposure, the program had a significant effect on reduction of depressive symptoms (β = −0.06, CI95% −0.12; −0.01) and an increase in empowerment indicators: OA participated in important household decisions (β = 0.09, CI95% 0.03;0.15); and OA participated in household decisions pertaining to expenses (β = 0.11, CI95% 0.05;0.18). Qualitative analysis found a strong trend showing a reduction of sadness, and feeling of increasing empowerment.ConclusionsThese results suggest that a non-conditional transfer in older ages have an impact beyond the economic sphere, impacting even the mental well-being. This effect could be explained because the pension produces feelings of safety and welfare. It is recommendable that governments should invest efforts towards universalizing the non-contributory pension programs in order to ensure a basic income for the elderly.
Highlights
One of the most important demographic challenges expected for low and middle-income countries in the 21st century will be the increase of the number of older adults (OA) and the pressure this will have on social security systems, available medical assistance, and service demand for elderly care
After a year of exposure, the program had a significant effect on reduction of depressive symptoms (b = 20.06, CI95% 20.12; 20.01) and an increase in empowerment indicators: OA participated in important household decisions (b = 0.09, CI95% 0.03;0.15); and OA participated in household decisions pertaining to expenses (b = 0.11, CI95% 0.05;0.18)
Given the currently gap in the evaluation literature regarding the impact of economic transfer programs on the OA in other areas more than just economic effects, our objective was to estimate the impact of the non-contributory pension program 70 y mas on mental well-being of its beneficiaries
Summary
One of the most important demographic challenges expected for low and middle-income countries in the 21st century will be the increase of the number of older adults (OA) and the pressure this will have on social security systems, available medical assistance, and service demand for elderly care. Aging process in low and middle-income countries is characterized by the presence of poverty and inequality. In these countries, poverty among OA (60 years and over) is higher than that for the entire population [2]. Old age could be a stage of life characterized by the reduction of formal work activities that in turns leads to a decrease in income and, consequentially, economic insecurity. Income insecurity in old age may have a negative effect on the welfare of the elderly and can often cause the impoverishment of the household. The program consisted in a non-conditional cash transfer of US$40 monthly to all older adults (OA) aged 70 and over. We evaluate the effect of the program on mental well-being of its beneficiaries
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