Measuring Intra-Generational Redistribution in PAYG Pension Schemes

Jonas Klos, Tim Krieger and Sven Stöwhase

No 8200, CESifo Working Paper Series from CESifo

Abstract: In this paper, we propose a novel index for measuring intra-generational redistribution in pay-as-you-go pension schemes. Our index solely requires information on contributions and pension benefits of retirees, enabling us to measure intra-generational redistribution isolated from possible inter-generational redistribution. We use contribution records of approx. 100,000 German individuals, who progressed into retirement in 2007-2015, to measure the level of intra-generational redistribution in the German statutory pension scheme (GRV). A recent reform of childcare benefit provision, which became effective in 2014, confirms the predictions of our index. The reform introduced additional benefits for a subgroup of substantial size of German mothers, due to which the index value for women, but not for men jumps up. Our findings suggests that GRV fulfils the ideal of a Bismarckian pension system without intra-generational redistribution for men, while women benefit from intra-generational redistribution.

Keywords: PAYG pension systems; intra-generational redistribution; Beveridge vs. Bismarck; index; microdata; Germany (search for similar items in EconPapers)
JEL-codes: C55 D31 H55 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-age and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp8200.pdf (application/pdf)

Related works:
Journal Article: Measuring intra-generational redistribution in PAYG pension schemes (2022)
Working Paper: Measuring intra-generational redistribution in PAYG pension schemes (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8200

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().