Konferenzbeitrag

Inequality and Defined Benefit Pensions when Life Expectancy is Heterogeneous

In this paper, we analyze how life expectancy-driven redistribution of income through a defined pension benefit system impacts on inequality in annual consumption. Our analysis combines a methodology that quantifies life expectancy-driven redistribution through the pension system with a structural life-cycle model in which labor supply, retirement and consumption decisions respond to changes in the pension system. Based on the estimated model, we show that the German pension system induces a large regressive redistribution of life-time income, and this redistribution increases inequality in average annual consumption. Behavioral responses to the pension system matter for the results. Increasing progressivity in pension contributions or pension benefits only partially offsets the life expectancy-driven redistribution via the pension system.

Sprache
Englisch

Erschienen in
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Income (Re-) Distribution ; No. G19-V1

Klassifikation
Wirtschaft
Optimization Techniques; Programming Models; Dynamic Analysis
Personal Income, Wealth, and Their Distributions
Social Security and Public Pensions

Ereignis
Geistige Schöpfung
(wer)
Kemptner, Daniel
Haan, Peter
Prowse, Victoria
Ereignis
Veröffentlichung
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Kemptner, Daniel
  • Haan, Peter
  • Prowse, Victoria

Entstanden

  • 2015

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