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Effects of Sharing Parental Leave on Pensioners' Poverty and Gender Inequality in Old Age. A Simulation in IFSIM

Elisa Baroni ()
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Elisa Baroni: Institute for Futures Studies, Postal: Institute for Futures Studies, Box 591, SE-101 31 Stockholm, Sweden

No 2010:5, Arbetsrapport from Institute for Futures Studies

Abstract:

The poverty outcome in old age is affected by labour market reforms. Using our in house agent based simulation model IFSIM we show that sharing equally the parental leave can increase or reduce poverty among the elderly depending on the macro and behavioural responses that the Reform off-sets. In general, it can be good for (elderly) women provided that (i) it spurs them to work more, particularly in older ages (ii) it does not slow down economic growth (hence pension income growth) below a level when working more does not pay. Our simulations show that the effect of this Reform on poverty and gender inequality is time dependent: different outcomes might be expected for different generations depending on whether the balancing mechanism (in the state income pension) is present or not. In general, the Reform might not lead to positive outcomes if it occurs in conjunction with the striking of the automatic balancing, unless a behavioural response to work more among older workers (in response to the balancing) is also unleashed.

Keywords: Poverty; Pensioners; Parental leave; Simulation model; IFSIM; Gender inequality (search for similar items in EconPapers)
JEL-codes: C15 J13 J14 J16 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2010-06-03
New Economics Papers: this item is included in nep-age, nep-cmp and nep-lab
Note: ISSN: 1652-120X ISBN: 978-91-85619-65-8
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifswps:2010_005

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