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Pension Wealth and the Gender Wealth Gap

Author

Listed:
  • Karla Cordova

    (Pomona College)

  • Markus M. Grabka

    (DIW Berlin)

  • Eva Sierminska

    (Luxembourg Institute of Socio-Economic Research (LISER), DIW, IZA and GLO)

Abstract

We examine the gender wealth gap with a focus on pension wealth and statutory pension rights. By taking into account employment characteristics of women and men, we are able to identify the extent to which the redistributive effect of pension rights reduces the gender wealth gap. The data for our analysis come from the German Socio-Economic Panel (SOEP), one of the few surveys that collects information on wealth and pension entitlements at the individual level. Pension wealth data are available in the SOEP for 2012 only. While the relative raw gender wealth gap is about 35% (or 31,000 euros) when analysing the standard measure of net worth, it shrinks to 28% when pension wealth is added. This reduction is due to redistributive elements such as caregiver credits provided through the statutory pension scheme. Results of a recentred influence functions (RIF) decomposition show that pension wealth reduces the gap substantially in the lower half of the distribution. At the 90th percentile, the gender wealth gap in net worth and in augmented wealth remains more stable at roughly 27–30%.

Suggested Citation

  • Karla Cordova & Markus M. Grabka & Eva Sierminska, 2022. "Pension Wealth and the Gender Wealth Gap," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 755-810, October.
    • Handle: RePEc:spr:eurpop:v:38:y:2022:i:4:d:10.1007_s10680-022-09631-6
    DOI: 10.1007/s10680-022-09631-6
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    2. Philipp M. Lersch & Emanuela Struffolino & Agnese Vitali, 2022. "Wealth in Couples: Introduction to the Special Issue," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 623-641, October.
    3. Marc Fleurbaey & Domenico Moramarco & Vito Peragine, 2024. "Measuring inequality and welfare when some inequalities matter more than others," Working Papers ECARES 2024-15, ULB -- Universite Libre de Bruxelles.
    4. Nicolas Frémeaux & Marion Leturcq, 2022. "Wealth Accumulation and the Gender Wealth Gap Across Couples’ Legal Statuses and Matrimonial Property Regimes in France," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 643-679, October.
    5. Javier Olivera & Yadiraah Iparraguirre, 2022. "Gender gap in pension savings: Evidence from Peru’s individual capitalization system∗," Documentos de Trabajo / Working Papers 2022-513, Departamento de Economía - Pontificia Universidad Católica del Perú.
    6. Bartels, Charlotte & Sierminska, Eva & Schröder, Carsten, 2024. "Wealth Creators or Inheritors? Unpacking the Gender Wealth Gap from Bottom to Top and Young to Old," IZA Discussion Papers 17324, Institute of Labor Economics (IZA).
    7. Marc Fleurbaey & Domenico Moramarco & Vito Peragine, "undated". "Measuring inequality and welfare when some inequalities matter more than others," Working Papers ecineq-, ECINEQ, Society for the Study of Economic Inequality.
    8. Javier Olivera & Yadiraah Iparraguirre, 2022. "The Gender Gap in Pension Savings: Evidence from Peru's Individual Capitalization System," LISER Working Paper Series 2022-06, Luxembourg Institute of Socio-Economic Research (LISER).
    9. Ines Heck & Anna Hornykewycz & Jakob Kapeller & Rafael Wildauer, 2024. "Vermögensverteilung in Österreich: eine Analyse auf Basis des HFCS 2021/22," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 255, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    10. Javier Olivera & Yadiraah Iparraguirre, 2022. "The Gender Gap in Pension Savings," Working Papers 624, ECINEQ, Society for the Study of Economic Inequality.
    11. Miriam Rehm & Alyssa Schneebaum & Barbara Schuster, 2022. "Intra-Couple Wealth Inequality: What’s Socio-Demographics Got to Do with it?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 681-720, October.

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    More about this item

    Keywords

    Gender wealth gap; Pension entitlements; Germany; Redistribution; SOEP Socio-Economic Panel (SOEP);
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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