wage rates that were derived from the cross-sectional<sup>data.Forsimulationswherepositive</sup> economy-wide wage growth was assumed, we<sup>multipliedthe age-specificwagerateby the</sup> projected growth factor. For all three countries our<sup>simulationsuse three differentlabor</sup> attachment pattems for women: "Full career women"<sup>arethosewhohavesamelaborforce</sup> participation rates and retire at same age (65) as men.<sup>"10-year women" are womenwhowork</sup> only 10 years, early in their adult lives, before children<sup>are born."Averagewomen"have average</sup> work and wage for each education cell. "Average<sup>womenif RA=65"arewomenwho starttheir</sup> annuity at age 65 but have same work experience as<sup>average women.</sup> Contributions and fund accumulations are based on<sup>estimatedannualearnings andwork</sup> experience for each age-education-gender cell. In<sup>baseline,realrateofwagegrowthis2%</sup> annually and rate of return is 5% during accumulation<sup>stage,4% duringpayoutstage. Allwork</sup> years are treated as contributing years although<sup>this probablyoverstatesaccumulations.</sup> Annuitization upon retirement is assumed. Gender-specific<sup>mortalitytables areused.</sup> Joint annuity with 60% to survivor (70% in Argentina)<sup>isrequiredformarried men whoannuitize.</sup> Wives are assumed to be 3 years younger<sup>than andhave3-4yearlongevitygreater thantheir</sup> husbands. In Chile males retire at age 65, survive<sup>for15.5 yearsand purchasea joint annuitythat</sup> covers their wives for an additional 6.4 years. Females<sup>retireat age 60, survivefor 22.8years and</sup> purchase individual annuities. In Argentina<sup>menat age65survive14.5years and joint annuity</sup> covers their wives for another 7 years. Women<sup>survivefor22.5yearsat age60.In Mexico both</sup> men and women retire at 65. Male and<sup>femalelife expectanciesat65are15.8and18.5,</sup> respectively, Women collect joint annuity for 5.7<sup>years.Pesos are convertedinto $'s according to</sup> 1994 rates for Chile (413/1), 1996 for Argentina<sup>(1/1) 1997forMexico(8/1).InArgentina,</sup> current rate of exchange is only 25-30% as much<sup>as1996rate, sowould yieldmuchlower</sup> annuities.

_Table 6:_ Own-annuities are from Table 2. Chile's<sup>MPG was$91in1994, startingat age65</sup> for men, 60 for women. Twenty years of contributions<sup>arerequiredfor eligibility.Currentlyit is</sup> formally price-indexed, but ad hoc adjustments<sup>havebeen madethat keep it roughly on par with</sup> wage growth. If it became wage-indexed<sup>it would rise to $200in 40 years.In Table3the MPGis</sup> converted to an actuarially equivalent monthly top-up,<sup>althoughin realityretirees mustuseup</sup> their own accumulation by withdrawing an amount<sup>equaltothe MPG monthly, andthenget the</sup> full $91 from the state after they run out of money.<sup>The flat benefit in Argentinais$200,starting</sup> at age 65 for men and 60 for women. The reduced<sup>flatis $140,startingat age70.These benefits</sup> are price-indexed. In Argentina 30 years of contributions<sup>are required for the full flat and 10 years</sup> for the reduced flat. The full filat is received by the<sup>averagemaleandfullcareer womanin every</sup> educational category. The 10-year woman and<sup>average woman get only the reducedflat, exceptat</sup> the top educational level, where she meets the years of<sup>service requirement.Mexico'sSQisa</sup> uniform payment by the government into each<sup>worker'saccount per day worked.It is 5.5%of the</sup> minimum wage or 2.2% of the average wage,<sup>indexedto prices.All workersareeligible. Payouts</sup> start at age 65.

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