Impact of the Argentine pension system on income distribution throughout life cycle considering work interruptions and differences in life expectancy

Purpose This study assesses the impact of the Argentine pension system on income distribution over the life cycle, focusing on differences in life expectancy at birth (LEB) and incomplete work histories. Design/methodology/approach The study uses data from the Longitudinal Sample of Registered Employment (MLER) and analyses a cohort of workers who reach retirement age in 2022, calculating lifetime income with and without the pension system. Findings The analysis shows that socioeconomic inequalities in EVN and work interruptions affect the redistributive effects of the pension system, often exacerbating pre-existing inequalities in the labor market. Research limitations/implications Although the database used does not represent the total number of workers (only formal dependents), the study provides interesting results for decision-making in pension matters: the existence of interruptions in work histories justifies the need for a pension system that reduces income inequalities throughout the life cycle. Practical implications Greater efforts must be invested in reducing interruptions in work histories. Originality/value This is the only study carried out with data from Argentina that considers job interruptions and differences in LEB in an analysis of the impact of the pension system.