IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v30y2023i3p355-359.html
   My bibliography  Save this article

The impact of the public pension system on wealth inequality. The distribution of augmented wealth in Poland

Author

Listed:
  • Marcin Wroński

Abstract

Public pension wealth is an important component of a household’s wealth portfolio. However, due to data scarcity, it is usually omitted in the research on household wealth. The literature on augmented wealth is limited to developed economies. We use a novel data source to estimate the distribution of public pension wealth and augmented wealth in Poland. We assess the impact of education-related mortality differential on the value of public pension wealth. Our research sample includes pensioners and workers near retirement. Therefore, we measure the impact of public pension wealth on wealth distribution among those who already profit from their public pension wealth, or will profit from it soon. Moreover, the value of their public pension wealth is stable and robust, while the value of public pension entitlements of the working-age population may change rapidly due to pension system reforms. The public pension system significantly decreases wealth inequality. The Gini index equals 0.5007 for private wealth distribution and 0.3472 for augmented wealth distribution. Decomposition techniques confirm an equalizing impact of public pension wealth on the pension system. The impact of education-related mortality differential on the value of public pension wealth exists at the individual level, but it diminishes at the household level.

Suggested Citation

  • Marcin Wroński, 2023. "The impact of the public pension system on wealth inequality. The distribution of augmented wealth in Poland," Applied Economics Letters, Taylor & Francis Journals, vol. 30(3), pages 355-359, February.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:3:p:355-359
    DOI: 10.1080/13504851.2021.1985719
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2021.1985719
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2021.1985719?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:30:y:2023:i:3:p:355-359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.