IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v39y1993i3p257-278.html
   My bibliography  Save this article

The Earnings‐Related State Pension, Indexation And Lifetime Redistribution In The U.K

Author

Listed:
  • John Creedy
  • Richard Disney
  • Edward Whitehouse

Abstract

The redistributive impact of the U.K. state pension scheme is examined. Benefit‐cost ratios are calculated using individual lifetime earnings profiles constructed for a cohort of men drawn from cross‐section data. The scheme is investigated at maturity and revenue neutrality is imposed in order to isolate the intra‐generationally redisiributive effects of the pension scheme. The results suggest that differences in returns to the pension scheme are driven by differential mortality, which outweigh the redistributive effect of the two‐tier benefit structure. Various reforms of the pension scheme are then simulated, and solved for revenue neutrality. The results suggest that a great deal of care is needed in formulating reforms if redistributive objectives are to be achieved.

Suggested Citation

  • John Creedy & Richard Disney & Edward Whitehouse, 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 257-278, September.
    • Handle: RePEc:bla:revinw:v:39:y:1993:i:3:p:257-278
    DOI: 10.1111/j.1475-4991.1993.tb00459.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4991.1993.tb00459.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4991.1993.tb00459.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joan Gil & Guillen López-Casasnovas, "undated". "Redistribution in the Spanish pension system: An approach to its life time effects," Working Papers 99-16, FEDEA.
    2. Sara Flisi & Marcello Morciano, 2011. "Trends and dynamics in the Italian labour market. An empirical evaluation using RFL data, 1993-2007," Center for the Analysis of Public Policies (CAPP) 0091, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    3. Richard Disney & Paul Johnson & Gary Stears, 1998. "Asset wealth and asset decumulation among households in the Retirement Survey," Fiscal Studies, Institute for Fiscal Studies, vol. 19(2), pages 153-174, May.
    4. Richard Disney & Carl Emmerson & Sarah Smith, 2004. "Pension Reform and Economic Performance in Britain in the 1980s and 1990s," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 233-274, National Bureau of Economic Research, Inc.
    5. Aziz, Omar & Gemmell, Norman & Laws, Athene, 2013. "The Distribution of Income and Fiscal Incidence by Age and Gender: Some Evidence from New Zealand," Working Paper Series 18785, Victoria University of Wellington, Chair in Public Finance.
    6. Ayfer Karayel, 2006. "The intragenerationally redistributive effects of the retirement insurance scheme in Turkey before and after the 1999 reform," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 441-448.
    7. James Banks & Carl Emmerson, 2000. "Public and private pension spending: principles, practice and the need for reform," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 1-63, March.
    8. Guillem López & Joan Gil, 1997. "Life-time redistribution effects of the Spanish public pension system," Economics Working Papers 242, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:39:y:1993:i:3:p:257-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.