Measuring intra-generational redistribution in PAYG pension schemes

Jonas Klos, Tim Krieger and Sven Stöwhase

No 2020-01, Discussion Paper Series from University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy

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, nep-eur, nep-ias and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/215692/1/1694154254.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:zbw:wgspdp:202001

Access Statistics for this paper

More papers in Discussion Paper Series from University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().