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Income Gap by Gender: Perpetuated or Exacerbated when Old?

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Author Info
Solange Berstein
Andrea Tokman
Abstract

Many countries have switched from a pay-as-you-go pension systems to a fully funded scheme with individual accounts. These fully funded systems are commonly implemented as defined contribution schemes, so that the final benefits paid are uncertain and closely related the contribution profile. Therefore, different labor market participation rates and different wages between genders do not only have an impact on earnings during the working period, but also during retirement. Besides, some special features of the Chilean System augment that phenomena and some do the opposite. This article analyses why the relative income position of women with respect to men gets worse off in the old age and how different features of the system, the labor market and the individual affect that.

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Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 334.

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Date of creation: Nov 2005
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Handle: RePEc:chb:bcchwp:334

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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.:
  1. Jurajda, Stepan & Harmgart, Heike, 2007. "When do female occupations pay more?," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 170-187, March. [Downloadable!] (restricted)
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  2. Rodrigo Cifuentes, 2003. "Tax Incentives for Retirement Savings: Macro and Welfare Effects in an OLG-GE Model with Liquidity Constraints and Heterogeneous Consumers," Working Papers Central Bank of Chile 242, Central Bank of Chile. [Downloadable!]
  3. Bertranou, Fabio M., 2001. "Pension Reform and Gender Gaps in Latin America: What are the Policy Options?," World Development, Elsevier, vol. 29(5), pages 911-923, May. [Downloadable!] (restricted)
  4. James, Estelle & Edwards, Alejandra Cox & Wong, Rebeca, 2003. "The gender impact of pension reform," Journal of Pension Economics and Finance, Cambridge University Press, vol. 2(02), pages 181-219, July. [Downloadable!]
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