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Income Inequality over the Later-life Course: A Comparative Analysis of Seven OECD Countries

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  • Robert Brown
  • Steven Prus

Abstract

This paper examines income inequality over stages of the later-life course (age 45 and older) and systems that can be used to mitigate this inequality. Two hypotheses are tested: Levels of income inequality decline during old age because public benefits are more equally distributed than work income; and, because of the progressive nature of government benefits, countries with stronger public income security programs are better able to reduce income inequalities during old age. The analysis is performed by comparing age groups within seven OECD countries (Canada, Germany, the Netherlands, Norway, Sweden, the United Kingdom, and the United States) using Luxembourg Income Study data. Both hypotheses are supported. Several conclusions are drawn from the findings.

Suggested Citation

  • Robert Brown & Steven Prus, 2006. "Income Inequality over the Later-life Course: A Comparative Analysis of Seven OECD Countries," LIS Working papers 435, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:435
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    References listed on IDEAS

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    1. Robert Brown & Steven Prus, 2004. "Social Transfers And Income Inequality In Old Age," North American Actuarial Journal, Taylor & Francis Journals, vol. 8(4), pages 30-36.
    2. Robert Brown & Jeffrey Ip, 2000. "Authors’ Reply: Social Security-Adequacy, Equity, and Progressiveness: A Review of Criteria Based on Experience in Canada and the United States - Discussion by Dan Clark," North American Actuarial Journal, Taylor & Francis Journals, vol. 4(2), pages 144-144.
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    Cited by:

    1. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2009. "Using The P90/P10 Index To Measure U.S. Inequality Trends With Current Population Survey Data: A View From Inside The Census Bureau Vaults," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 166-185, March.
    2. Elnaz Hajebi & Mohammad Javad Razmi, 2014. "Effect Of Income Inequality On Health Status In A Selection Of Middle And Low Income Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(4), pages 133-152, December.
    3. Bérangère Legendre, 2011. "La croissance du revenu des retraités en Europe peut-elle être considérée comme pro-pauvres ?," Post-Print hal-00951721, HAL.
    4. Souza, Pedro H.G.F., 2013. "The Decline in Inequality In Brazil, 2003-2009: The Role Of The State," Institute for Research on Labor and Employment, Working Paper Series qt33q062zj, Institute of Industrial Relations, UC Berkeley.
    5. Arber, Sara & Fenn, Kirsty & Meadows, Robert, 2014. "Subjective financial well-being, income and health inequalities in mid and later life in Britain," Social Science & Medicine, Elsevier, vol. 100(C), pages 12-20.
    6. Zhanna Kravchenko, 2008. "On Public Support for Working Parents in Russia," LIS Working papers 479, LIS Cross-National Data Center in Luxembourg.
    7. Carlos Farinha Rodrigues & Isabel Andrade, 2016. "The Age-Old Problem Of Old Age Poverty In Portugal, 2006 – 14," Working Papers Department of Economics 2016/24, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    8. Bérangère Legendre, 2014. "Fiscalité des retraités, redistribution et équité," Post-Print hal-01284030, HAL.
    9. Carlos Farinha Rodrigues & Isabel Andrade, 2013. "The Age-Old Problem of Old Age Poverty in Portugal," Working Papers Department of Economics 2013/27, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

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