Determinants of contribution density of the Tunisian pension system : a cross sectional analysis

Abstract EN

This paper presents an analysis of pension coverage in Tunisia based on density contribution.

This approach is justified by the fact that coverage rates usually used do not give a clear indication on effective contribution and particularly could not explain the low level of pensions in the private sector.

Using administrative data, we compute the contribution densities for the private sector most important regimes.

We then use an ordered PROBIT model to identify 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.