The impacts of the Cape Verde self-employed social security scheme

Abstract

Cape Verde, as many developing countries, is attempting to extend the social protection toward the independent workers, which represent about 32% of the country employed force. This work project analysis the impacts of the Cape Verde self-employed social security framework, under both individual and scheme perspectives. Based on overlapping generations projections that allows for life-cycle behavior, we find that the returns on the pension contributions are negative for men, and that the scheme might not be financially sustainable, over a sixty year horizon.