Social Pensions in Europe: The Aim, The Impact and The Cost
The aim of this paper is to evaluate the impact in terms of poverty and cost of the introduction of social (or noncontributory) pensions in Europe. We use data from the household survey EU-SILC and focus on 17 countries. After reviewing the existence of social pensions in Europe and evidence of old-age poverty, we simulate – in a static framework – the introduction of two social pension schemes: universal and means tested social pensions. We see that the old-age poverty would substantially decrease (average poverty rate goes from 19.7 to 2.5 percent with the universal scheme) but not totally, even though the level of the universal pension is set up to the poverty line. The impact on poverty with the means tested social pension is quite similar (though always smaller) than the one with the universal pension, since most elderly have few other income sources than pensions. On the opposite, it costs less. In fact, the means test reduces substantially the number of entitled elderly while the universal pension leads to a ‘leakage’ to non-poor elderly.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: Boulevard du Rectorat, 7, Batiment 31, boite 39, 4000 Liege|
Phone: + 32 (0) 4 366 31 08
Fax: + 32 (0) 4 366 31 06
Web page: http://www2.ulg.ac.be/crepp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Ignacio Conde-Ruiz & Paola Profeta, 2007.
"The Redistributive Design of Social Security Systems,"
- J. Ignacio Conde-Ruiz & Paola Profeta, 2007. "The Redistributive Design of Social Security Systems," Economic Journal, Royal Economic Society, vol. 117(520), pages 686-712, 04.
- Tim GoedemÃ© & Wim Van Lancker, 2009. "A Guaranteed Minimum Income for EuropeÂ’s Elderly. Options and Pitfalls in the Design of a Harmonised Basic Pension Scheme in the European Union," Working Papers 0901, Herman Deleeck Centre for Social Policy, University of Antwerp.
- Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," World Bank Economic Review, World Bank Group, vol. 8(2), pages 191-211, May.
- Palacios, Robert & Sluchynsky, Oleksiy, 2006. "Social pensions Part I : their role in the overall pension system," Social Protection and Labor Policy and Technical Notes 36237, The World Bank.
- Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
- J. Ignacio Conde Ruiz & Paola Profeta, 2004.
"What Social Security: Beveridgean or Bismarckian?,"
2004 Meeting Papers
317, Society for Economic Dynamics.
- J. Ignacio Conde-Ruiz & Paola Profeta, . "What Social Security: Beveridgean or Bismarckian?," Working Papers 2003-16, FEDEA.
- J. Ignacio Conde & Paola Profeta, 2002. "What social security: Beveridgean or Bismarckian?," Economics Working Papers 633, Department of Economics and Business, Universitat Pompeu Fabra.
When requesting a correction, please mention this item's handle: RePEc:rpp:wpaper:1007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mathieu Lefebvre)
If references are entirely missing, you can add them using this form.