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Negative correlation between retirement age and contribution length?

Author

Listed:
  • Erik Granseth

    (Swedish Pensions Agency)

  • Wolfgang Keck

    (Wissenschaftzentrum Berlin für Socialforschung)

  • Wolfgang Nagl

    (Institute for Advanced Studies)

  • Melinda Tir

    (Databank of the Research Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Andras Simonovits

    (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences and also Mathematical Institute of Budapest University of Technology, Budapest)

Abstract

Though never stated explicitly, there is a hidden hypothesis that in a normal pension system, the retirement age and the contribution length are strongly and positively correlated. We compare the time paths of male and female correlation coefficients in Austria, Hungary, Germany and Sweden for several years and categories; and obtain a mixed picture. Hungary stands out with its strong negative correlation but the remaining three 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 & Melinda Tir & Andras Simonovits, 2016. "Negative correlation between retirement age and contribution length?," CERS-IE WORKING PAPERS 1633, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:1633
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    References listed on IDEAS

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    1. Christoph Freudenberg & Tamás Berki & Ádám Reiff, 2016. "A Long-Term Evaluation of Recent Hungarian Pension Reforms," MNB Working Papers 2016/2, Magyar Nemzeti Bank (Central Bank of Hungary).
    2. Chan Sewin & Stevens Ann H, 2004. "How Does Job Loss Affect the Timing of Retirement?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-24, May.
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    5. Tibor Czegledi & Endre Szabo & Melinda Tir & Andras Simonovits, 2016. "Retirement rules in Hungary: gainers and losers," CERS-IE WORKING PAPERS 1631, Institute of Economics, Centre for Economic and Regional Studies.
    6. Palmer, Edward, 2000. "The Swedish pension reform model : framework and issues," Social Protection Discussion Papers and Notes 23086, The World Bank.
    7. Wagener, Andreas, 2006. "Chebyshev's Algebraic Inequality and comparative statics under uncertainty," Mathematical Social Sciences, Elsevier, vol. 52(2), pages 217-221, September.
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    11. Andras Simonovits, 2011. "The Mandatory Private Pension Pillar in Hungary: An Obituary," CERS-IE WORKING PAPERS 1112, Institute of Economics, Centre for Economic and Regional Studies.
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    Citations

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    Cited by:

    1. 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.
    2. Zoltán Ádám & András Simonovits, 2019. "From Democratic to Authoritarian Populism: Comparing Pre- and Post-2010 Hungarian Pension Policies," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(3), pages 333-355, September.
    3. Tibor Czeglédi & András Simonovits & Endre Szabó & Melinda Tir, 2017. "What has been Wrong with the Retirement Rules in Hungary?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(3), pages 359-387, September.
    4. 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.
    5. 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.

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    More about this item

    Keywords

    public pension system; length of employment; fragmented careers; retirement age;
    All these keywords.

    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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