IDEAS home Printed from https://ideas.repec.org/p/fda/fdaeee/55.html
   My bibliography  Save this paper

Redistribution in the Spanish pension system: An approach to its life time effects

Author

Listed:
  • Joan Gil
  • Guillem López i Casasnovas

Abstract

This paper computes first the internal rates of return of different population cohorts. Secondly, we study the intragenerational aspects by calculating the returns over life-time contributions for workers of different categories, grouped by earnings, gender and marital status. Under a set of assumptions on contribution rates and wage profiles -in absence of actual data on longitudinal contributions- we show the existence of significant intergenerational effects. They favour older cohorts due basically to the contribution bases applied during the 60s and 70s. Some of these effects follow a rather erratic pattern, mostly due to the changes overtime of the definition of the maximum allowable contribution. These limits play a similar crucial role for the intragenerational analysis, although in general, the social security 'deal' favours high income individuals, women and married males.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Joan Gil & Guillem López i Casasnovas, "undated". "Redistribution in the Spanish pension system: An approach to its life time effects," Studies on the Spanish Economy 55, FEDEA.
    • Handle: RePEc:fda:fdaeee:55
    as

    Download full text from publisher

    File URL: https://documentos.fedea.net/pubs/eee/eee55.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anthony Pellechio & Gordon Goodfellow, 1983. "Individual Gains and Losses from Social Security before and after the 1983 Amendments," Cato Journal, Cato Journal, Cato Institute, vol. 3(2), pages 417-442, Fall.
    2. Nelissen, J.H.M., 1987. "The redistributive impact of the general old age pensions act on lifetime income in the Netherlands," Other publications TiSEM c1e60227-c0d1-48c9-ae27-5, Tilburg University, School of Economics and Management.
    3. repec:bla:revinw:v:39:y:1993:i:3:p:257-78 is not listed on IDEAS
    4. María Isabel Escobedo, 1991. "Un análisis empírico de los efectos finales producidos sobre el empleo industrial por el sistema de financiación de la Seguridad Social española 1975-1983," Investigaciones Economicas, Fundación SEPI, vol. 15(1), pages 169-192, January.
    5. Boskin, Michael J. & Kotlikoff, Lawrence J. & Puffert, Douglas J. & Shoven, John B., 1986. "Social Security: A Financial Appraisal Across and Within Generations," CEPR Publications 244432, Stanford University, Center for Economic Policy Research.
    6. Michael D. Hurd & John B. Shoven, 1985. "The Distributional Impact of Social Security," NBER Chapters, in: Pensions, Labor, and Individual Choice, pages 193-222, National Bureau of Economic Research, Inc.
    7. John Creedy & Richard Disney & Edward Whitehouse, 1993. "The Earnings‐Related State Pension, Indexation And Lifetime Redistribution In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 257-278, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mar Devesa Carpio & José E. Devesa Carpio, 2009. "El coste y el desequilibrio financiero-actuarial de los sistemas de reparto. El caso del sistema Español," Working Papers. Serie EC 2009-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Gemma Abio & Concepció Patxot & Elisenda Rentería & Guadalupe Souto, 2017. "Intergenerational Transfers in Spain: The Role of Education," Hacienda Pública Española / Review of Public Economics, IEF, vol. 223(4), pages 101-130, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guillem López & Joan Gil, 1997. "Life-time redistribution effects of the Spanish public pension system," Economics Working Papers 242, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Jagadeesh Gokhale & Laurence J. Kotlikoff, 2002. "Social Security's Treatment of Postwar Americans. How Bad Can It Get?," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 207-262, National Bureau of Economic Research, Inc.
    3. Michael J. Boskin & Douglas J. Puffert, 1987. "Social Security and the American Family," NBER Working Papers 2117, National Bureau of Economic Research, Inc.
    4. Michael J. Boskin & Douglas J. Puffert, 1987. "Social Security and the American Family," NBER Chapters, in: Tax Policy and the Economy, Volume 1, pages 139-159, National Bureau of Economic Research, Inc.
    5. Martin S. Feldstein & Jeffrey B. Liebman, 2002. "The Distributional Effects of an Investment-Based Social Security System," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 263-326, National Bureau of Economic Research, Inc.
    6. Jeffrey R. Brown & Julia Lynn Coronado & Don Fullerton, 2009. "Is Social Security Part of the Social Safety Net?," NBER Chapters, in: Tax Policy and the Economy, Volume 23, pages 37-72, National Bureau of Economic Research, Inc.
    7. Jeffrey B. Liebman, 2002. "Redistribution in the Current U.S. Social Security System," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 11-48, National Bureau of Economic Research, Inc.
    8. Martin Feldstein & Andrew Samwick, 1998. "The Transition Path in Privatizing Social Security," NBER Chapters, in: Privatizing Social Security, pages 215-264, National Bureau of Economic Research, Inc.
    9. John Geanakoplos & Olivia S. Mitchell & Stephen P. Zeldes, "undated". "Social Security Money's Worth," Pension Research Council Working Papers 97-20, Wharton School Pension Research Council, University of Pennsylvania.
    10. Afonso, Luís Eduardo & Fernandes, Reynaldo, 2005. "Uma Estimativa dos Aspectos Distributivos da Previdência Social no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 59(3), July.
    11. Peter Diamond & Jonathan Gruber, 1997. "Social Security and Retirement in the U.S," NBER Working Papers 6097, National Bureau of Economic Research, Inc.
    12. Boskin, Michael J. & Kotlikoff, Lawrence J. & Puffert, Douglas J. & Shoven, John B., 1986. "Social Security: A Financial Appraisal Across and Within Generations," CEPR Publications 244432, Stanford University, Center for Economic Policy Research.
    13. Coronado Julia Lynn & Fullerton Don & Glass Thomas, 2011. "The Progressivity of Social Security," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-45, November.
    14. Lixin He, 2008. "The distributional effects of public pension reform in urban China," Psychometrika, Springer;The Psychometric Society, vol. 3(2), pages 255-276, June.
    15. Jagadeesh Gokhale & Laurence J. Kotlikoff & Alexi Sluchynsky, 2002. "Does it pay to work?," Working Papers (Old Series) 0206, Federal Reserve Bank of Cleveland.
    16. Boskin, Michael J. & Puffert, Douglas J., 1987. "The Financial Impact of Social Security by Cohort," CEPR Publications 244435, Stanford University, Center for Economic Policy Research.
    17. Steven Caldwell & Melissa Favreault & Alla Gantman & Jagadeesh Gokhale & Thomas Johnson & Laurence J. Kotlikoff, 1999. "Social Security's Treatment of Postwar Americans," NBER Chapters, in: Tax Policy and the Economy, Volume 13, pages 109-148, National Bureau of Economic Research, Inc.
    18. Julia Lynn Coronado & Don Fullerton & Thomas Glass, 2002. "Long-Run Effects of Social Security Reform Proposals on Lifetime Progressivity," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 149-206, National Bureau of Economic Research, Inc.
    19. Coile, Courtney & Diamond, Peter & Gruber, Jonathan & Jousten, Alain, 2002. "Delays in claiming social security benefits," Journal of Public Economics, Elsevier, vol. 84(3), pages 357-385, June.
    20. Wenguang Yu & Bing Li & Xianghan Zhu, 2021. "Income Redistribution Effect of Raising the Overall Planning Level of Basic Endowment Insurance for Urban Employees in China," Sustainability, MDPI, vol. 13(2), pages 1-29, January.

    More about this item

    Keywords

    Social Security in Spain; Life-time contributions and pensions; Social Security internal rates of return;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fda:fdaeee:55. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Carmen Arias (email available below). General contact details of provider: https://www.fedea.net .

    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.