Poverty Reduction Among Older People Through Pensions: A Comparative Analysis

Van Vliet, O., Caminada, K., Goudswaard, K. and Wang, J. (2020) Poverty reduction among older people through pensions: A comparative analysis. In: B. Greve (ed.) Routledge International Handbook of Poverty. New York: Routledge, pp. 363-375.

20 Pages Posted: 23 Feb 2020

See all articles by Olaf van Vliet

Olaf van Vliet

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

Koen Caminada

Leiden Law School - Department of Economics

Kees Goudswaard

Leiden Law School - Department of Economics

Jinxian Wang

Leiden University - Department of Tax Law and Economics

Date Written: January 2020

Abstract

Given the ageing of the populations in many Western countries, older people constitute an important group in the analysis of poverty. In this chapter, we examine the poverty incidence among older people across LIS countries, relying on data from the Luxembourg Income Study. The data show that poverty rates are substantially reduced by redistribution via tax/benefit systems (mainly via pension benefits). Furthermore, the data show that old-age poverty rates and the antipoverty effect of pensions vary substantially across countries. Finally, in almost all countries, the poverty rates based on disposable income declined between 1985 and 2013. The reason for this reduction in old-age poverty is the increase of the poverty reducing effect of pension benefits). Interestingly, the trend in the poverty rates of the working age population differs from that of older people; in most countries of our sample, the poverty incidence increased for the working age population. However, it should be noted that in most Western countries, poverty rates for older people are still at a higher level than for the working age population.

Keywords: poverty; income inequality; pensions; retirement; welfare state; social policy

JEL Classification: H53; H55; I32

Suggested Citation

van Vliet, Olaf and Caminada, Koen and Goudswaard, Kees and Wang, Jinxian, Poverty Reduction Among Older People Through Pensions: A Comparative Analysis (January 2020). Van Vliet, O., Caminada, K., Goudswaard, K. and Wang, J. (2020) Poverty reduction among older people through pensions: A comparative analysis. In: B. Greve (ed.) Routledge International Handbook of Poverty. New York: Routledge, pp. 363-375.. Available at SSRN: https://ssrn.com/abstract=3526181

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

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

Jinxian Wang

Leiden University - Department of Tax Law and Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

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

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