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On the Measurement of Intra-Generational Lifetime Redistribution in Pension Systems

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Author Info
Antonio Abatemarco () (Center for Research on Pensions and Welfare Policies, Turin)

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Abstract

It is known that existing measures of intra-generational (within cohorts) redistribution induced by pension schemes may prove highly misleading in the presence of inter-generational (between cohorts) redistribution. In this paper we show that the Kakwani progressivity index, extended to account for both positive and negative individual tax liabilities, is a non-distorted measure of intra-generational redistribution in pension systems. The relevance of the distortion induced by inter-generational transfers is empirically shown in the comparison between pre- and post-reform Italian pension schemes from 1992 to 2004.

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File URL: http://cerp.unito.it/index.php/en/publications/working-papers/150-on-the-measurement-of-intra-generational-lifetime-redistribution-in-pension-systems-
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Publisher Info
Paper provided by Center for Research on Pensions and Welfare Policies, Turin (Italy) in its series CeRP Working Papers with number 55.

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Length: 18 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:crp:wpaper:55

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Related research
Keywords: Redistribution; progressivity; pension;

Find related papers by JEL classification:
D30 - Microeconomics - - Distribution - - - General
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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