Pension Reform and Income Inequality Among the Elderly in 15 European Countries

37 Pages Posted: 19 Aug 2011

See all articles by Olaf van Vliet

Olaf van Vliet

Leiden University - Leiden Law School; Leiden University - Department of Economics

Jim Been

Leiden University - Department of Economics; Netspar

Koen Caminada

Leiden Law School - Department of Economics

Kees Goudswaard

Leiden Law School - Department of Economics

Date Written: August 1, 2011

Abstract

The aging of populations and hampering economic growth increase pressure on public finances in many advanced capitalist societies. Consequently, governments have adopted pension reforms in order to relieve pressure on public finances. These reforms have contributed to a relative shift from public to private pension schemes. Since private social security plans are generally less redistributive than public social security, it can be hypothesized that the privatization of pension plans has led to higher levels of income inequality among the elderly. Existing empirical literature has mainly focused on cross-country comparisons at one moment in time or on time-series for a single country. This study contributes to the income inequality and pension literature by empirically analysing the distributional effects of shifts from public to private pension provision in 15 European countries for the period 1995-2007, using pooled time series cross-section regression analyses. Remarkably, we do not find empirical evidence that shifts from public to private pension provision lead to higher levels of income inequality or poverty among elderly people. The results appear to be robust for a wide range of econometric specifications.

Keywords: income inequality, pension reform, public/private-mix, retirement, welfare state

JEL Classification: H53, H55, I32

Suggested Citation

van Vliet, Olaf and Been, Jim and Caminada, Koen and Goudswaard, Kees, Pension Reform and Income Inequality Among the Elderly in 15 European Countries (August 1, 2011). Available at SSRN: https://ssrn.com/abstract=1909838 or http://dx.doi.org/10.2139/ssrn.1909838

Olaf Van Vliet (Contact Author)

Leiden University - Leiden Law School ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Leiden University - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Jim Been

Leiden University - Department of Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/been.html

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Koen Caminada

Leiden Law School - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands
++31715277858 (Phone)

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/caminada.html

Kees Goudswaard

Leiden Law School - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
251
Abstract Views
1,228
rank
128,141
PlumX Metrics