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Negative correlation between retirement age and length of contribution?

Author

Listed:
  • Erik Granseth
  • Wolfgang Keck
  • Wolfgang Nagl
  • András Simonovits
  • Melinda Tir

Abstract

Though never stated explicitly, there is a hidden hypothesis that in a normal pension system, the retirement age and the length of contribution are strongly and positively correlated. We compare the time paths of male and female correlation coefficients in Austria, Germany, Hungary and Sweden for several years and categories; and obtain a mixed picture. Hungary and Austria stand out with their strong negative correlation but the remaining two countries cannot boast with strongly positive correlation, either. Further work is needed to understand the significance of our findings but they signal some problems with these systems: heterogeneously fragmented careers and unfair benefit rules.

Suggested Citation

  • Erik Granseth & Wolfgang Keck & Wolfgang Nagl & András Simonovits & Melinda Tir, 2019. "Negative correlation between retirement age and length of contribution?," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 1050-1070.
    • Handle: RePEc:oup:oxecpp:v:71:y:2019:i:4:p:1050-1070.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy067
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    Citations

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    Cited by:

    1. Andras Simonovits, 2018. "The Boomerang of Female40: seniority pensions in Hungary, 2011–2018," CERS-IE WORKING PAPERS 1832, Institute of Economics, Centre for Economic and Regional Studies.
    2. Simonovits, András, 2019. "Merev vagy rugalmas nyugdíjkorhatár? Áttekintés [Rigid versus flexible retiring age: a survey]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 345-375.
    3. Károly Fazekas & Ágnes Szabó-Morvai (ed.), 2018. "The Hungarian Labour Market 2018," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2018, December.
    4. András Simonovits, 2023. "A rational pension reform package: Hungary, 2025," CERS-IE WORKING PAPERS 2324, Institute of Economics, Centre for Economic and Regional Studies.

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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