Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-25T18:09:12.475Z Has data issue: false hasContentIssue false
  • English
  • Français

What do we learn about redistribution effects of pension systems from internationally comparable measures of Social Security wealth?

Published online by Cambridge University Press:  23 April 2019

Michele Belloni ,
Agar Brugiavini ,
Raluca E. Buia ,
Ludovico Carrino ,
Danilo Cavapozzi ,
Cristina E. Orso  and
Giacomo Pasini
Michele Belloni
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
Agar Brugiavini
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
Raluca E. Buia
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
Ludovico Carrino
Affiliation:
King's College London, London, UK
Danilo Cavapozzi*
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
Cristina E. Orso
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
Giacomo Pasini
Affiliation:
Ca’ Foscari University of Venice, Venice, Italy
*
*Corresponding author. Email: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

We present novel estimates of Social Security Wealth (SSW) at the individual level based on the SHARE survey. Our estimates are based on a rigorous methodology taking into account country-specific legislations, the earning history and the longevity prospects of individuals. The key advantage over existing estimates is that our measures of SSW are fully comparable across countries. This allows us to construct indexes of the redistribution enacted by the pension systems in Europe. Finally, we provide descriptive evidence of the relationship between SSW and private wealth.

Keywords

RedistributionSHARESocial Security WealthD14D31H55
Type
Article
Information
Journal of Pension Economics & Finance , Volume 19 , Issue 4 , October 2020 , pp. 548 - 566
Copyright
Copyright © Cambridge University Press 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alessie, R, Angelini, V and Van Santen, P (2013) Pension wealth and household savings in Europe: evidence from SHARELIFE. European Economic Review 63, 308–328.CrossRefGoogle Scholar
Antonova, L, Aranda, L, Pasini, G and Trevisan, E (2014) “Migration, Family History and Pension: The Second Release of the SHARE Job Episodes Panel.” SHARE Working Paper Series 18-2014.Google Scholar
Attanasio, O and Brugiavini, A (2003) Social security and households' saving. The Quarterly Journal of Economics 118, 1075–1119.CrossRefGoogle Scholar
Belloni, M, Carrino, L, Orso, CE, Buia, RE, Cavapozzi, D, Pasini, G and Brugiavini, A (2016) “Internationally Comparable Measures of Individual Social Security Wealth in SHARE Wave 4.” SHARE Working Paper Series 24-2016.Google Scholar
Biggs, AG, Sarney, M and Tamborini, CR (2009) “A Progressivity Index for Social Security.” Issue Paper No. 2009-01, Social Security Administration, USA.Google Scholar
Blau, FD, Ferber, MA and Winkler, AE (eds) (2006) The Economics of Women, Men and Work, 5th Edn. Englewood, Cliffs, NJ: Prentice Hall.Google Scholar
Börsch-Supan, A and Wilke, C (2006) The German public pension system: How It will become an NDC system Look-Alike’. In Holzmann, R and Palmer, E (eds), Pension Reform: Issues and Prospects for Non-Financial Defined Contribution (NDC) Schemes. Washington, DC: The World Bank, pp. 573–610.Google Scholar
Börsch-Supan, A, Brandt, M, Hank, K and Schröder, M (eds) (2011) The Individual and the Welfare State. Life Histories in Europe. Heidelberg: Springer.CrossRefGoogle Scholar
Börsch-Supan, A, Brandt, M, Hunkler, C, Kneip, T, Korbmacher, J, Malter, F, Schaan, B, Stuck, S and Zuber, S (2013 a) Data resource profile: the survey of health, ageing and retirement in Europe (SHARE). International Journal of Epidemiology 42, 992–1001.CrossRefGoogle Scholar
Börsch-Supan, A, Brandt, M, Litwin, H and Weber, G (eds) (2013 b) Active Ageing and Solidarity Between Generations in Europe: First Results from SHARE After the Economic Crisis. Berlin: De Gruyter.CrossRefGoogle Scholar
Brandolini, A and Smeeding, TM (2011) Income inequality in richer and OECD countries. In Nolan, B, Salverda, W and Smeeding, TM (eds), The Oxford Handbook of Economic Inequality. Oxford, UK: Oxford University Press, pp. 71–100.Google Scholar
Brugiavini, A, Cavapozzi, D, Pasini, G and Trevisan, E (2013) “Working Life Histories from SHARELIFE: A Retrospective Panel.” SHARE Working Paper Series11-2013.Google Scholar
Dicks-Mireaux, L and King, MA (1984) Pension wealth and household savings: tests of robustness. Journal of Public Economics 23, 115–140.CrossRefGoogle Scholar
Feldstein, M (1974) Social security, induced retirement, and Aggregate capital accumulation. Journal of Political Economy 82, 905–926.CrossRefGoogle Scholar
Gale, WG (1998) The effects of pensions on household wealth: a reevaluation of theory and evidence. Journal of Political Economy 106, 706–724.CrossRefGoogle Scholar
Gruber, J and Wise, DA (eds) (1998) Social Security Programs and Retirement Around the World. Chicago: The University of Chicago Press.CrossRefGoogle Scholar
Gruber, J and Wise, DA (eds) (2004) Social Security Programs and Retirement Around the World: Micro-Estimation. Chicago: The University of Chicago Press.Google Scholar
Gruber, J and Wise, DA (eds) (2007) Social Security Programs and Retirement Around the World: Fiscal Implications of Reform. Chicago: The University of Chicago Press.CrossRefGoogle Scholar
HMD (2013) www.mortality.org.Google Scholar
Holzmann, R, Palacios, R and Zviniene, A (2004) “Implicit Pension Debt: Issues, Measurement and Scope in International Perspective.” Social Protection Discussion Paper Series, Human Development Network, The World Bank.Google Scholar
Kapteyn, A and de Vos, K (1999) Social security and retirement in the Netherlands. In Gruber, J and Wise, DA (eds), Social Security and Retirement Around the World. Chicago, USA: University of Chicago Press, 269–303.Google Scholar
Kapteyn, A, Alessie, R and Lusardi, A (2005) Explaining the wealth holdings of different cohorts: productivity growth and social security. European Economic Review 49, 1361–1391.CrossRefGoogle Scholar
Malter, F and Börsch-Supan, A (eds) (2013) SHARE Wave 4: Innovations & Methodology. Munich: MEA, Max Planck Institute for Social Law and Social Policy.Google Scholar
Nolan, B, Salverda, W and Smeeding, TM (eds) (2011) The Oxford Handbook of Economic Inequality. Oxford UK: Oxford University Press.CrossRefGoogle Scholar
OECD (2009) Pensions at A Glance 2009: Retirement-Income Systems in OECD Countries. Paris: OECD Publishing.Google Scholar
OECD (2011) Pensions at a Glance 2011: Retirement-Income Systems in OECD and G20 Countries. Paris: OECD Publishing.Google Scholar
OECD (2013) Pensions at a Glance 2013: OECD and G20 Indicators. Paris: OECD Publishing.Google Scholar
OECD (2016) Society at a Glance 2016 OECD Social Indicators. Paris: OECD Publishing.Google Scholar
Schröder, M (ed.) (2011) Retrospective Data Collection in the Survey of Health, Ageing and Retirement in Europe. SHARELIFE Methodology. Mannheim: Mannheim Research Institute for the Economics of Aging (MEA).Google Scholar
Stock, JH and Wise, DA (1990) The pension inducement to retire: An option value analysis. In Wise, DA (ed.), Issues in the Economics of Aging. Chicago, USA: University of Chicago Press, 205–230.Google Scholar