Impact of the Non Contributory Social Pension Program 70 y más on Older Adults Mental Well Being

Abstract

Background

In 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 over. We evaluate the effect of the program on mental well being of its beneficiaries.

Methods Findings

Quantitative qualitative methods were used. For the quantitative component, we used the selection criteria established by the program (age locality size) to form the Intervention (OA aged 70–74 residing in rural localities, <2500 inhabitants) 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, 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.

Results

After a year of exposure, the program had a significant effect on reduction of depressive symptoms (β = −0.06, CI95% −0.12; −0.01) an increase in empowerment indicators: OA participated in important household decisions (β = 0.09, CI95% 0.03;0.15); 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, feeling of increasing empowerment.

Conclusions

These 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 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.