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Are the widowed too much insured? Survivor’s pensions and living standards upon widowhood in France

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  • Léa Cimelli

Abstract

To investigate compensation through survivor’s pensions at widowhood in France, this paper uses an administrative dataset to exploit a large sample of survivors whose income is known several years before and after widowhood. An event study first identifies the effects of widowhood on men’s and women’s living standards. Then, I measure how much this effect is offset by the survivor’s pension. To distinguish between total and partial overcompensation, I analyse the heterogenous effects of widowhood according to pre-widowhood share of couple income. The results show that both men’s and women’s living standards tend to increase upon widowhood. For both groups, survivors earning less than 40% of their couple income tend to be fully compensated by a survivor’s pension, while those earning more tend to be overcompensated. Survivor’s pensions largely ensure that women’s living standards do not plummet upon widowhood while also helping to prevent them from falling below the poverty threshold.

Suggested Citation

  • Léa Cimelli, 2023. "Are the widowed too much insured? Survivor’s pensions and living standards upon widowhood in France," Working Papers 279, French Institute for Demographic Studies.
    • Handle: RePEc:idg:wpaper:ru_mfowbu9wft_qngvqy
    DOI: 10.48756/ined-dt-279.1123
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    References listed on IDEAS

    as
    1. Alicia H. Munnell & Geoffrey Sanzenbacher & Alice Zulkarnain, 2020. "What Factors Explain the Decline in Widowed Women’s Poverty?," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1881-1902, October.
    2. Henri Sterdyniak, 2019. "Pensions de réversion : pour une réforme unificatrice," SciencePo Working papers Main hal-03403614, HAL.
    3. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    4. Sébastien LaRochelle-Côté & John Myles & Garnett Picot, 2012. "Income Replacement Rates among Canadian Seniors: The Effect of Widowhood and Divorce," Canadian Public Policy, University of Toronto Press, vol. 38(4), pages 471-495, December.
    5. Richard V. Burkhauser & Philip Giles & Dean R. Lillard & Johannes Schwarze, 2005. "Until Death Do Us Part: An Analysis of the Economic Well-Being of Widows in Four Countries," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 60(5), pages 238-246.
    6. Carole Bonnet & Jean-Michel Hourriez, 2012. "Égalité entre hommes et femmes à la retraite : quels rôles pour les droits familiaux et conjugaux ?," Population (french edition), Institut National d'Études Démographiques (INED), vol. 67(1), pages 133-158.
    7. repec:hal:spmain:info:hdl:2441/454dvjiqop8p78bjh3a0suo3gj is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/6pkiv1f16b84a8sbitqdhlpf3k is not listed on IDEAS
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