Intragenerational distributional analysis in the french private sector pension scheme - A microsimulation approach

This paper analyses the intragenerational distributional impact of the French private sector pension scheme among workers born in the 1950s, using comparisons of the internal rates of return. We focus on the redistributive patterns according to the level of income, but also provide elements on horizontal redistribution, mainly due to differences in the number of children. In order to neutralize the intra-household transfers induced by the Social Security pension scheme (principally from men to women), we consider redistribution among individuals and households. We rely on the 1998 Financial Assets Survey complemented with the French micro-simulation dynamic model Destinie. The redistributive patterns among individuals are obvious: women, especially low-income women, emerge as the main beneficiaries. Within couples, redistribution is still clear, mainly towards the lower levels of income. Redistributive transfers also favor couples who grew up numerous children. In addition, the paper provides evidence on the extent of antiredistributive transfers induced by differences in mortality: such transfers occur principally among men. However, even allowing for differential mortality, the pension scheme never displays anti-redistribution.