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Poverty among the elderly: The role of public pension systems

Author

Listed:
  • JACQUES Philippe,

    (Analysis Group, Montréal)

  • LEROUX Marie-Louise,

    (Université du Québec à Montréal)

  • STEVANOVIC Dalibor,

    (Université du Québec à Montréal)

Abstract

The objective of this paper is to measure the impact of first-pillar public pensions spending on the prevalence of poverty among the elderly. Using data from 27 European countries from 1995 to 2014, we estimate the elasticity of the poverty rate among individuals aged over 65 years to per capita public pension spending. We show the existence of a nonlinear relationship between these two variables. The elasticity is negative and statistically different from 0 only beyond a level of spending of 685€ per capita. At the average value of 2,819€, it is estimated that the elasticity is about -1.45. This nonlinear relation is robust to the treatment of possible endogeneity and to different robustness checks like the variation of the poverty line, and the inclusion of country-specific differences in public pension plans.

Suggested Citation

  • JACQUES Philippe, & LEROUX Marie-Louise, & STEVANOVIC Dalibor,, 2018. "Poverty among the elderly: The role of public pension systems," LIDAM Discussion Papers CORE 2018022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2018022
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    Cited by:

    1. is not listed on IDEAS
    2. Rajko Tomaš, 2022. "Measurement of the Concentration of Potential Quality of Life in Local Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 79-109, August.
    3. Yoko Niimi & Charles Yuji Horioka, 2023. "Elderly poverty and its measurement," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 29, pages 307-315, Edward Elgar Publishing.
    4. Koen Caminada & Kees Goudswaard & Jingqi Liu & Chen Wang & Jinxian Wang, 2025. "Decomposition of Changes in Elderly Poverty across 16 European Countries: 2005-2022," LIS Working papers 882, LIS Cross-National Data Center in Luxembourg.
    5. Abdul Hadi & Yogi Vidyattama & Badriah Badriah & Prihoda Emese, 2024. "Adequacy of the Pension System: A Qualitative Interview of Indonesian Civil Service Pensioners in Kapuas Regency," Economies, MDPI, vol. 12(12), pages 1-18, November.
    6. Lv, Yahui & Zhang, Siqi & Li, Hanyue & Wang, Shitong, 2025. "Coupling analysis of rural revitalization and talent development in disadvantaged counties in China," Finance Research Letters, Elsevier, vol. 82(C).
    7. Patricia Peinado & Felipe Serrano, 2024. "Minimum Pensions and Regional Income Redistribution in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 251(4), pages 51-79, December.

    More about this item

    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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