The Impact of Social Security Wealth on the Distribution of Wealth in the European Union

26 Pages Posted: 6 Jun 2022 Last revised: 23 Jun 2022

See all articles by Marcin Wroński

Marcin Wroński

Warsaw School of Economics (SGH) - Collegium of World Economy

Date Written: May 30, 2022

Abstract

The aging of society increases the importance of public pension systems. This study evaluates the influence of public pension entitlements on wealth inequality. Novel data source - the Eurosystem Household Finance and Consumption Survey – is used to compare the impact of the public pension system on wealth inequality in 19 European countries. Findings indicate that in all investigated countries, social security wealth reduces wealth inequality. The augmented wealth inequality is ca. 30% lower than the private wealth inequality. Social security wealth mitigates not only wealth inequality measured at the country level but also wealth inequality in the whole European Union.

Keywords: household finance, household wealth, social security wealth, European Union, Household Finance and Consumption Survey

JEL Classification: D31, G51, H55

Suggested Citation

Wroński, Marcin, The Impact of Social Security Wealth on the Distribution of Wealth in the European Union (May 30, 2022). Available at SSRN: https://ssrn.com/abstract=4123103 or http://dx.doi.org/10.2139/ssrn.4123103

Marcin Wroński (Contact Author)

Warsaw School of Economics (SGH) - Collegium of World Economy ( email )

Al. Niepodległości 164
Warszawa, 02-554
Poland

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