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Neues Arbeitspapier von J. Klos, T. Krieger und S. Stöwhase: Measuring Intra-generational Redistribution in PAYG Pension Schemes

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Abstract:

In this paper, we propose a novel index for measuring intra-generational redistribution in pay-as-you-go pension schemes. Our index solely requires information on contributions and pension benefi ts of retirees, enabling us to measure intra-generational redistribution isolated from possible inter-generational redistribution. We use contribution records of approx. 100,000 German individuals, who progressed into retirement in 2007-2015, to measure the level of intra-generational redistribution in the German statutory pension scheme (GRV). A recent reform of childcare bene fit provision, which became eff ective
in 2014, con firms the predictions of our index. The reform introduced additional benefi ts for a subgroup of substantial size of German mothers, due to which the index value for women, but not for men jumps up. Our findings suggests that GRV ful fils the ideal of a Bismarckian pension system without intra-generational redistribution for men, while women bene fit from intra-generational redistribution.

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