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French Retirement Reforms and Intragenerational Equity in Retirement Duration

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Author Info

  • Patrick Aubert

    ()

  • Cindy Duc

    ()

  • Bruno Ducoudré

    ()

Abstract

As most developed countries, France has gone over the last 20 years through a process of pension system reforms, mainly aiming at increasing the average retirement age, through increasing the required number of contribution years or through postponing legal (minimal and/or normal) ages. Public debates over which lever should be preferred have been paramount in France, with concerns focusing on redistribution issues between high wage high life-expectancy and low-wage low life-expectancy workers. In this paper, we empirically address this issue by simulating the differentiated impacts of the past French reforms on average retirement ages across wage quartiles. Our simulations show that increasing the required duration criterion—as was done by the 1993 and 2003 reforms–have redistributive impact as regards retirement age, while increasing the normal age—as was done by the 2010 reform—has a counter-distributive impact. The redistributive impact on average of the required duration criterion however only holds thanks to the fact that disabled workers—most of them in the lowest wage quartile—are exempted from it. Last, increasing minimal age has ambiguous impacts according to gender: redistributive among women but counter-distributive among men. Copyright Springer Science+Business Media New York 2013

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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 161 (2013)
Issue (Month): 3 (September)
Pages: 277-305

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Handle: RePEc:kap:decono:v:161:y:2013:i:3:p:277-305

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: Retirement behaviour; Pensions; Microsimulation; H55; J26;

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  1. Boeri, Tito & Brugiavini, Agar, 2008. "Pension Reforms and Women Retirement Plans," IZA Discussion Papers 3821, Institute for the Study of Labor (IZA).
  2. Cremer, Helmuth & Pestieau, Pierre, 2003. "The Double Dividend of Postponing Retirement," International Tax and Public Finance, Springer, vol. 10(4), pages 419-34, August.
  3. Mahfouz, Selma & Briard, Karine, 2011. "Modulations de la retraite selon l'âge de départ : principes directeurs et évolutions depuis les années 1980," Economics Papers from University Paris Dauphine 123456789/7403, Paris Dauphine University.
  4. Fehr, Hans & Kallweit, Manuel & Kindermann, Fabian, 2012. "Pension reform with variable retirement age: a simulation analysis for Germany," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(03), pages 389-417, July.
  5. Edward R. Whitehouse & Asghar Zaidi, 2008. "Socio-Economic Differences in Mortality: Implications for Pensions Policy," OECD Social, Employment and Migration Working Papers 71, OECD Publishing.
  6. Selma Mahfouz & Karine Briard, 2011. "Modulations de la retraite selon l’âge de départ : principes directeurs et évolutions depuis les années 1980," Économie et Statistique, Programme National Persée, vol. 441(1), pages 15-38.
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