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The intragenerationally redistributive effects of the retirement insurance scheme in Turkey before and after the 1999 reform

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  • Ayfer Karayel

Abstract

The paper analyses the intragenerational redistribution generated by the retirement insurance scheme in Turkey before and after the 1999 reform. Previous research shows that when a pension scheme's contribution and benefit schedules are proportional, the existence of an intergenerational redistribution is a precondition for the existence of an intragenerational redistribution, but that, otherwise, redistribution within a generation is possible without intergenerational redistribution. The main finding of this work is that the existence of the intergenerational redistribution is still a precondition for the old pension scheme despite its disproportional benefit schedule. Under the assumptions used, both of the schemes redistribute from high-wage earners to low-wage earners among women, but redistribute differently among men. Among men, the old scheme generates indeterminable transfers, although the new scheme redistributes from low-wage earners to high wage-earners. The analysis takes into account a hypothetical distribution of wages.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500393001
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 4 ()
Pages: 441-448

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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:441-448

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  1. Julia Lynn Coronado & Don Fullerton & Thomas Glass, 1999. "Distributional Impacts of Proposed Changes to the Social Security System," NBER Working Papers 6989, National Bureau of Economic Research, Inc.
  2. Le Breton, Michel & Moyes, Patrick & Trannoy, Alain, 1996. "Inequality Reducing Properties of Composite Taxation," Journal of Economic Theory, Elsevier, vol. 69(1), pages 71-103, April.
  3. Coronado Julia Lynn & Fullerton Don & Glass Thomas, 2011. "The Progressivity of Social Security," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-45, November.
  4. Creedy, John & Disney, Richard & Whitehouse, Edward, 1993. "The Earnings-Related State Pension, Indexation and Lifetime Redistribution in the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 257-78, September.
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Cited by:
  1. Peter Kesting, 2010. "Why it is possible that wages and pensions can increase simultaneously in an ageing and stagnating % A theoretical investigation and a simulation of the German case," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 727-738.

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