Economic Crises and Globalisation as Drivers of Pension Privatisation: An Empirical Analysis

43 Pages Posted: 26 Jul 2017

See all articles by Markus Leibrecht

Markus Leibrecht

University of Reading - Henley Business School, Malaysia Campus

Joelle H. Fong

National University of Singapore

Date Written: July 23, 2017

Abstract

Pension systems are core institutional arrangements that are expected to be stable and reliable over consecutive generations. Nevertheless, reforms in pension provision intensified over the past decades, with several countries opting for privatisation of their pension system. We ask which factors lead governments to privatise pension systems and focus on economic crises and different facets of increased global pressures. We conduct duration analyses on a cross-section of nearly 100 economies among which 28 privatise their pension system between 1981 and 2012. Consistent with the crisis-begets-reform hypothesis, we find that severe economic crises speed up reform implementation. Likewise, high growth in economic and political globalisation is conducive for pension privatisation. These findings are robust to a variety of alternations in the empirical methodology.

Keywords: Economic Crisis, Pension Reform, Globalisation, Duration Analysis, Privatisation

JEL Classification: H11, H12, H55, P11

Suggested Citation

Leibrecht, Markus and Fong, Joelle H., Economic Crises and Globalisation as Drivers of Pension Privatisation: An Empirical Analysis (July 23, 2017). Available at SSRN: https://ssrn.com/abstract=3008499 or http://dx.doi.org/10.2139/ssrn.3008499

Markus Leibrecht (Contact Author)

University of Reading - Henley Business School, Malaysia Campus ( email )

Persiaran Graduan Kota Ilmu
Educity
Iskandar Puteri, Johor 79200
Malaysia

Joelle H. Fong

National University of Singapore ( email )

469C BUKIT TIMAH ROAD, LKYSPP
SINGAPORE, Singapore 259771
Singapore

HOME PAGE: http://https://lkyspp.nus.edu.sg/our-people/faculty/fong-hung-yee-joelle

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