Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287385 
Year of Publication: 
2021
Citation: 
[Journal:] Public Choice [ISSN:] 1573-7101 [Volume:] 190 [Issue:] 1-2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 53-73
Publisher: 
Springer US, New York, NY
Abstract: 
Voters in ageing societies expect pension reforms to be both inter-generationally and intra-generationally fair. In this paper, we propose a global measure of intra-generational redistribution in pay-as-you-go pension schemes as a basis for voters' evaluations of reforms. Our novel index only requires information on contributions by and pension benefits paid to retirees, enabling us to measure intra-generational redistribution isolated from possible inter-generational redistribution. We rely on the contribution records of approximately 100,000 Germans, 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 the childcare benefit provision, which became effective in 2014, confirms the predictions of our index. The reform introduced additional benefits for a substantial subgroup of German mothers, owing to which the index value for women, but not for men, jumps up. Our findings suggests that GRV fulfills the ideal of a Bismarckian pension system without intra-generational redistribution for men, while women benefit significantly from intra-generational redistribution.
Subjects: 
PAYG pension systems
Political support for reform
Intra-generational redistribution
Beveridge versus Bismarck
Index
Micro-data
Germany
JEL: 
H55
D31
C55
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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