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The political economy of derived pension rights

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Author Info

  • LEROUX, Marie - Louise

    ()
    (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • PESTIEAU, Pierre

    ()
    (University of Liege, CREPP; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium; PSE and CEPR)

Abstract

Derived pension rights exist in most Social Security systems but with variable generosity. They are mainly targeted towards non-working wives and widows and are viewed as a means to alleviate poverty among older women living alone. The purpose of this paper is to explain how they can emerge from a political economy process when the Social Security is a combination of Bismarckian and Beveridgian pillars. It also shows that derived rights tend to encourage stay-at- home wives thus revealing an unpleasant trade-o§ between female labor participation and poverty alleviation.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2010048.

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Date of creation: 01 Jul 2010
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Handle: RePEc:cor:louvco:2010048

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Keywords: social security; derived pension rights; majority voting; individualisation of pension rights;

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References

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  1. Belleflamme,Paul & Peitz,Martin, 2010. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9780521681599, October.
  2. LEROUX, Marie-Louise & PESTIEAU, Pierre & RACIONERO, Maria, 2009. "Voting on pensions : sex and marriage," CORE Discussion Papers 2009057, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000. "Political sustainability and the design of social insurance," Journal of Public Economics, Elsevier, vol. 75(3), pages 341-364, March.
  4. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000. " The Political Economy of Social Security," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 503-22, June.
  5. CASAMATTA, Georges & CREMER, Helmuth & PESTIEAU, Pierre, . "Voting on pensions with endogenous retirement age," CORE Discussion Papers RP -1754, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. LEFEBVRE, Mathieu & PESTIEAU, Pierre, . "The generosity of the welfare state towards the elderly," CORE Discussion Papers RP -1894, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Grégory de Walque, 2005. "Voting on Pensions: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 181-209, 04.
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  10. Pencavel, John, 1998. "Assortative Mating by Schooling and the Work Behavior of Wives and Husbands," American Economic Review, American Economic Association, vol. 88(2), pages 326-29, May.
  11. Winfried Pohlmeier & Luc Bauwens & David Veredas, 2007. "High frequency financial econometrics. Recent developments," ULB Institutional Repository 2013/136223, ULB -- Universite Libre de Bruxelles.
  12. Browning, Edgar K, 1975. "Why the Social Insurance Budget Is Too Large in a Democracy," Economic Inquiry, Western Economic Association International, vol. 13(3), pages 373-88, September.
  13. Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
  14. Zhenchao Qian, 1998. "Changes in assortative mating: The impact of age and education, 1970–1890," Demography, Springer, vol. 35(3), pages 279-292, August.
  15. Richard V. Burkhauser & Philip Giles & Dean R. Lillard & Johannes Schwarze, 2005. "Until Death Do Us Part: An Analysis of the Economic Well-Being of Widows in Four Countries," Journals of Gerontology: Series B, Gerontological Society of America, vol. 60(5), pages S238-S246.
  16. Carole Bonnet & Marco Geraci, 2009. "Correcting gender inequality in pensions. The experience of five European countries," Population and Societies 453, Institut National d'Études Démographiques (INED).
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Cited by:
  1. Leroux, Marie-Louise & Pestieau, Pierre & Racionero, María, 2011. "Voting on pensions: Sex and marriage," European Journal of Political Economy, Elsevier, vol. 27(2), pages 281-296, June.
  2. Tetsuo Ono, 2011. "Marital Status and Derived Pension Rights: A Political Economy Model of Public Pensions with Borrowing Constraints," Discussion Papers in Economics and Business 11-32-Rev.2, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Jan 2013.

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