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On the Measurement of Intra-Generational Lifetime Redistribution in Pension Systems

Author

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  • Antonio Abatemarco

    (Center for Research on Pensions and Welfare Policies, Turin)

Abstract

It is known that existing measures of intra-generational (within cohorts) redistribution induced by pension schemes may prove highly misleading in the presence of inter-generational (between cohorts) redistribution. In this paper we show that the Kakwani progressivity index, extended to account for both positive and negative individual tax liabilities, is a non-distorted measure of intra-generational redistribution in pension systems. The relevance of the distortion induced by inter-generational transfers is empirically shown in the comparison between pre- and post-reform Italian pension schemes from 1992 to 2004.

Suggested Citation

  • Antonio Abatemarco, 2006. "On the Measurement of Intra-Generational Lifetime Redistribution in Pension Systems," CeRP Working Papers 55, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    • Handle: RePEc:crp:wpaper:55
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    Cited by:

    1. Antonio Abatemarco & Maria Russolillo, 2023. "The Dynamics of the Gender Gap at Retirement in Italy: Evidence from SHARE," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 445-473, July.

    More about this item

    Keywords

    Redistribution; progressivity; pension;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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