IDEAS home Printed from https://ideas.repec.org/a/bok/journl/v22y2016i3p33-69.html
   My bibliography  Save this article

The Effect of Pension Wealth of National Pension and Special Occupational Pension on Household Savings (in Korean)

Author

Listed:
  • Wonjin Jang

    (Department of Economics, University of Seoul)

  • Heonjae Song

    (Department of Economics, University of Seoul)

Abstract

We investigated the effect of the public pension wealth on household savings. Using KLIPS (Korean Labor & Income Panel Study) data from 2007 to 2013, we estimate wage equation to estimate pension wealth of national pension and special occupational pension. According to the estimation, pension wealth of the national pension was calculated as ?145,370,000 while the special occupational pension calculated as ?221,280,000. We find that national pension and special occupation pension do not have a statistically significant effect. In case of the national pension, we conjecture that this result comes from low rates of pension subscribers and distrust in the national pension scheme. The special occupational pension has relatively high asset substitution effect because of high replacement rate. The the regression result might explain that substitution effect and recognition effect offset each other as a result of 2009 reform which had reduced replacement rate.

Suggested Citation

  • Wonjin Jang & Heonjae Song, 2016. "The Effect of Pension Wealth of National Pension and Special Occupational Pension on Household Savings (in Korean)," Economic Analysis (Quarterly), Economic Research Institute, Bank of Korea, vol. 22(3), pages 33-69, September.
    • Handle: RePEc:bok:journl:v:22:y:2016:i:3:p:33-69
    as

    Download full text from publisher

    File URL: https://www.bok.or.kr/ucms/cmmn/file/fileDown.do?menuNo=600354&atchFileId=ENG_0000000001019333&fileSn=1
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Special Occupation Pension; National Pension; Pension Wealth; Household Savings;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    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:bok:journl:v:22:y:2016:i:3:p:33-69. 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: Economic Research Institute (email available below). General contact details of provider: https://edirc.repec.org/data/imbokkr.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.