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Social Security and Inequality in Belgium

Author

Listed:
  • Giulia Klinges
  • Alain Jousten
  • Mathieu Lefebvre

Abstract

Over the years, the Belgian social security system has undergone substantial reform with a prime focus on increasing older worker labor force participation. The paper explores the effect of past reforms on inequality in old age. We distinguish two separate effects: The mechanical effect considers the change in inequality and expected benefit levels due to the reforms for a fixed retirement age distribution. The behavioral effect accounts for the endogenous change caused by changes in the incentives to work. Our results show that mechanically, reforms have led to losses in expected benefits for all but the lowest income quintile. Behavioral changes had a positive but orders of magnitude smaller effect. Overall, inequality decreased as a result of reforms.

Suggested Citation

  • Giulia Klinges & Alain Jousten & Mathieu Lefebvre, 2025. "Social Security and Inequality in Belgium," NBER Working Papers 34579, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34579
    Note: AG PE
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    References listed on IDEAS

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    1. Octave De Brouwer, 2023. "The Growth of Disability Insurance in Belgium: Economic determinants and Policy Implications," ULB Institutional Repository 2013/359863, ULB -- Universite Libre de Bruxelles.
    2. De Brouwer, Octave & Tojerow, Ilan, 2023. "The Growth of Disability Insurance in Belgium: Determinants and Policy Implications," IZA Discussion Papers 16376, Institute of Labor Economics (IZA).
    3. Alain Jousten & Mathieu Lefebvre, 2013. "Retirement Incentives in Belgium: Estimations and Simulations Using SHARE Data," De Economist, Springer, vol. 161(3), pages 253-276, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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