Political-Economy of Pension Plans: Impact of Institutions, Gender, and Culture

58 Pages Posted: 16 Mar 2012

See all articles by John W. Goodell

John W. Goodell

University of Akron - Department of Finance, College of Business Administration

Raj Aggarwal

University of Akron; Federal Reserve Banks - Federal Reserve Bank of Cleveland

Multiple version iconThere are 2 versions of this paper

Date Written: March 15, 2012

Abstract

National pension systems are an important part of financial intermediation and worker welfare in most countries, but how and why do they differ internationally? Controlling for important political, economic and social institutions, we document that international differences in pension progressivity, or how pensions reflect lifetime earnings, are negatively related to masculinity, uncertainty avoidance, individualism, long-term orientation, employment rights, average pension levels, social trust and economic inequality. We also find that pension progressivity is positively related to the economic and societal role of women, the extent of Catholicism; as well as political voice and accountability. These results provide important insights for both public policy and MNC managers.

Keywords: superannuation systems, pension systems, pension reforms, inequality, redistribution, demographics, gender economics, culture, social trust, political voice and accountability

JEL Classification: G22, G23, H55

Suggested Citation

Goodell, John W. and Aggarwal, Raj, Political-Economy of Pension Plans: Impact of Institutions, Gender, and Culture (March 15, 2012). Available at SSRN: https://ssrn.com/abstract=2023099 or http://dx.doi.org/10.2139/ssrn.2023099

John W. Goodell (Contact Author)

University of Akron - Department of Finance, College of Business Administration ( email )

259 S. Broadway
Akron, OH 44325
United States

Raj Aggarwal

University of Akron ( email )

Akron, OH 44325-4803
United States

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

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