Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-27T11:23:27.006Z Has data issue: false hasContentIssue false
  • English
  • Français

A dynamic analysis of the effects on pensioners’ welfare of social security reforms

Published online by Cambridge University Press:  16 June 2011

PATRICIA PEINADO  and
FELIPE SERRANO
PATRICIA PEINADO
Affiliation:
University of the Basque Country (e-mail: [email protected])
FELIPE SERRANO
Affiliation:
University of the Basque Country
Get access Rights & Permissions [Opens in a new window]

Abstract

The aim of this paper is to analyze the dynamic effects of the different parametric reforms oriented to reach the financial balance of public pension systems on the well-being of the retired population. Using the Spanish social security system as a case study, a duration analysis is implemented to look for a causal relationship and then estimate separately the effects of an effective retirement age delay and a replacement rate reduction as well as the combined effect of these two measures. We also estimate the effects of a delay on the reforms. We find that a change in the effective retirement age would have positive effects on the individual welfare of retired population, while a reduction of the replacement rate would diminish it. The combined effect of the two measures would finally translate into a welfare lost of the retired population. The delay on the reforms implies higher welfare loss (to the affected generations) than the analyzed reforms.

Keywords

H55I38J14Pensionswelfare dynamic analysissocial securitySpainreform
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 11 , Issue 1 , January 2012 , pp. 71 - 87
Copyright
Copyright © Cambridge University Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Butrica, B., Smith, K. and Steuerle, C. (2006) Working for a Good Retirement. Center for Retirement Research at Boston College, WP No. 8. Available at http://escholarship.bc.edu/retirementpapers/119 (accessed March 2006).CrossRefGoogle Scholar
Cellini, S. R., McKernan, S. and Ratcliffe, C. (2008) The dynamics of poverty in the United States: a review of data, methods, and findings. Journal of Policy Analysis and Management, 27(3): 577–605.CrossRefGoogle Scholar
Dang, T. T., Immervoll, H., Mantovani, D., Orsini, K. and Sutherland, H. (2006) An age perspective on economic well-being and social protection in nine OECD countries. EUROMOD, Working Paper EM3/06. Institute for Social and Economic Research. University of Essex. Available at http://www.iser.essex.ac.uk/research/euromod/working-papers?page=3 (accessed September 2006).CrossRefGoogle Scholar
De la Fuente, A. and Doménech, R. (2009) Convergencia real y envejecimiento: retos y propuestas. Colección Estudios Económicos 03–09, FEDEA.Google Scholar
Engelhardt, G. V. and Gruber, J. (2004) Social Security and the Evolution of Elderly Poverty. NBER Working Paper No. 10466. Cambridge, MA: National Bureau of Economic Research. Available at http://urbanpolicy.berkeley.edu/pdf/Ch6SocialEG0404.pdf (accessed March 2004).CrossRefGoogle Scholar
EUROSTAT (2009) Eurostat web page.Google Scholar
Gonand, F. and Legros, F. (2009) Pension reforms in France: impact on growth and inter-generational effects. The Geneva Papers, 34: 639–659.Google Scholar
Herce San Miguel, J. A. et al. . (2009) Los retos socio-económicos del envejecimiento en España. Analistas Financieros Internacionales, available at http://www.unespa.es/adjuntos/fichero_3009_20100125.pdfGoogle Scholar
Jenkins, S. P. (2009) Introduction to the analysis of spell duration dat (Unpublished manual). Institute for Social and Economic Research, University of Essex.Google Scholar
Kalbleisch, J. D. and Prentice, R. L. (2002) The Statistical Analysis of Failure Time Data. 2nd edn.New York: Wiley.CrossRefGoogle Scholar
Klein, J. P. and Moeschberger, M. L. (2003) Survival Analysis: Techniques for Censored and Truncated Data. New York: Springer.CrossRefGoogle Scholar
Lachance, M. (2008) Pension reductions: can welfare be preserved by delaying retirement? Journal of Pensions, Economics and Finance, 7(2): 157–177.CrossRefGoogle Scholar
Lancaster, T. (1990) The Econometric Analysis of Transition Data. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Nelson, K. (2004) Mechanisms of poverty alleviation: anti-poverty effects of non-means-tested and means-tested benefits in five welfare states. Journal of European Social Policy, 14(4): 371–390.CrossRefGoogle Scholar
Pfau, W. D. (2006) Comparing the impact of social security benefit reductions on the income distribution of the elderly. National Tax Journal, LVIV(2): 195–210.CrossRefGoogle Scholar
Prieto, M. and García, C. (2007) Tendencias de la distribución personal de la renta en España (1985–2002). Inferencia sobre indicadores y sensibilidad ante encuestas y escalas de equivalencia. Hacienda Pública Española, 181(2): 49–80.Google Scholar
Sainsbury, D. and Morissens, A. (2002) Poverty in Europe in the mid-1990s: the effectiveness of means-tested benefits. Journal of European Social Policy, 12(4): 307–327.CrossRefGoogle Scholar
Serrano, F., Eguía, B. and Ferreiro, J. (2011) Public pensions' sustainability and population ageing. Is immigration the solution? International Labour Review, 150(1) (forthcoming).CrossRefGoogle Scholar
Sutherland, H., Hancock, R., Hills, J. and Zantomio, F. (2008) Keeping up or falling behind? The impact of benefit and tax uprating on incomes and poverty. Fiscal Studies, 29(4): 467–498.CrossRefGoogle Scholar