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Public redistribution in Europe: Between generations or income groups?

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  • Hammer, Bernhard
  • Christl, Michael
  • De Poli, Silvia

Abstract

Governments face a potential trade-off between provision for the population in retirement and the support of working-age households with low income. Using EUROMOD-based microdata from 28 countries, we quantify public redistribution to pensioner- and working-age households, distinguishing also by income quartiles. In general, Northern European countries are characterized by a low net redistribution between households, limited public pensions, but a strong support of low-income households. By contrast, most Southern European countries are characterized by a high net redistribution to pensioners, offering generous benefits to some, but little support for working age households with low income. Our results show that a strong public net redistribution between households is associated with generous public benefits for a portion of the retirees, but negatively related to support for the population with low income.

Suggested Citation

  • Hammer, Bernhard & Christl, Michael & De Poli, Silvia, 2023. "Public redistribution in Europe: Between generations or income groups?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    • Handle: RePEc:eee:joecag:v:24:y:2023:i:c:s2212828x22000585
    DOI: 10.1016/j.jeoa.2022.100426
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    Cited by:

    1. Köppl-Turyna, Monika & Christl, Michael & De Poli, Silvia, 2024. "Does redistribution hurt growth? An empirical assessment of the redistribution-growth relationship in the European Union," Research Papers 27, EcoAustria – Institute for Economic Research.
    2. Rosero-Bixby, Luis, 2024. "Socioeconomic inequalities in national transfers accounts in Ecuador 2006 and 2011: Did a new socialist government make a difference?," The Journal of the Economics of Ageing, Elsevier, vol. 27(C).

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