Determinants of Contribution Density to the Argentine Pension System: An Analysis by Cohorts, 1996–2021

Abstract

Contribution density is not the same as labor formality; it refers to the amount or proportion of contributions per worker that can be accumulated on average in a given period. The objective of this article is to identify the determinants of contribution density to the Argentine pension system from administrative data from 1996?2021. An econometric model is proposed to explain the contribution density in 8 cohorts based on sociodemographic factors and job characteristics, using the negative binomial regression method. It is found that the density of contributions is low and depends on the branch of economic activity, the jurisdiction where the company is located, the individual´s income and gender, and the age of enrollment. The results are similar to those found by other works that study contribution density in Argentina and Latin American countries.