A Fragile Pillar: Statutory Pensions and the Risk of Old-Age Poverty in Germany
AbstractThe statutory pension system is the most important source of income for senior citizens in Germany. Due to increasing disruptions in employment biographies since the 1970s and due to the mass unemployment in eastern Germany since the 1990s, there is a growing fear of postretirement poverty in Germany. We develop a microsimulation model to compare the distribution of statutory pension incomes for new retirees in 2020 with the incomes of new retirees in 2004. The pension income distribution is calculated for eastern and western Germany separately, for men and women, and for different skill levels. Throughout Germany, we find growing postretirement poverty, especially among low-skilled workers. Eastern Germany will lose its current advantage in high pensions and low inequality.
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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.
Volume (Year): 66 (2010)
Issue (Month): 4 (December)
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Other versions of this item:
- Stefan Krenz & Wolfgang Nagl, 2009. "A Fragile Pillar: Statutory Pensions and the Risk of Old-age Poverty in Germany," Ifo Working Paper Series Ifo Working Paper No. 76, Ifo Institute for Economic Research at the University of Munich.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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