Income Gap by Gender: Perpetuated or Exacerbated when Old?
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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