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Political-economy of pension plans: Impact of institutions, gender, and culture

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  • Aggarwal, Raj
  • Goodell, John W.

Abstract

National pension systems are an important part of financial intermediation and worker welfare in most countries, but how and why do they differ internationally? Controlling for important political, economic and social institutions, we document that international differences in pension progressivity, or how pensions reflect lifetime earnings, are negatively related to masculinity, uncertainty avoidance, individualism, long-term orientation, employment rights, average pension levels, social trust and economic inequality. We also find that pension progressivity is positively related to the economic and societal role of women, the extent of Catholicism; as well as political voice and accountability. These results provide important insights for both public policy and MNC managers.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 37 (2013)
Issue (Month): 6 ()
Pages: 1860-1879

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Handle: RePEc:eee:jbfina:v:37:y:2013:i:6:p:1860-1879

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Web page: http://www.elsevier.com/locate/jbf

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Keywords: Superannuation systems; Pension systems; Pension reforms; Inequality; Redistribution; Demographics; Gender economics;

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Cited by:
  1. Mohan, Nancy & Zhang, Ting, 2014. "An analysis of risk-taking behavior for public defined benefit pension plans," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 403-419.

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