EconPapers    
Economics at your fingertips  
 

When the State Mirrors the Family: The Design of Pension Systems

Vincenzo Galasso and Paola Profeta

No 8723, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study how the prevailing internal organization of the family affected the initial design of pension systems. Our theoretical framework predicts that, in society with weak family ties, pensions systems were introduced to act as a safety net, while in societies with strong ties they replicate the tight link between generations by providing generous benefits. Using a historical classification of family ties, we show that in societies dominated by (weak ties) absolute nuclear families (e.g. Anglo-Saxon countries), safety net pension systems emerged; and vice versa in societies dominated by strong families. These results are robust to controlling for alternative legal, religious, and political explanations. Evidence on individual data confirm these findings: US citizens whose ancestors came from countries featuring strong ties (communitarian or egalitarian nuclear) families prefer to rely on the government as a provider of old age security through generous retirement benefits.

Keywords: Culture; Family ties; Pension design (search for similar items in EconPapers)
JEL-codes: H10 H55 N30 Z10 Z13 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://cepr.org/publications/DP8723 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: When the State Mirrors the Family: The Design of Pension Systems (2018) Downloads
Working Paper: When the State Mirrors the Family: The Design of Pension Systems (2012) Downloads
Working Paper: When the State Mirrors the Family: The Design of Pension Systems (2012) Downloads
Working Paper: When the State Mirrors the Family: The Design of Pension Systems (2011) Downloads
Working Paper: When the State Mirrors the Family: The Design of Pension Systems (2010) Downloads
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:cpr:ceprdp:8723

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP8723

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-23
Handle: RePEc:cpr:ceprdp:8723