Political-Economy of Pension Plans: Impact of Institutions, Gender, and Culture
58 Pages Posted: 29 Apr 2012
Date Written: March 2012
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, accountability
JEL Classification: G22, G23, H55
Suggested Citation: Suggested Citation