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Altruism and fairness in a public pension system

Author

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  • van der Heijden, E.C.M.

    (Tilburg University, School of Economics and Management)

  • Nelissen, J.H.M.

    (Tilburg University, School of Economics and Management)

  • Verbon, H.A.A.

    (Tilburg University, School of Economics and Management)

Abstract

In this paper it is empirically investigated whether feelings of altruism towards members of other generations and senses of justice have an impact on the individual s evaluation of the public pension system. The data have been obtained from a large-scale survey carried out among a representative sample of the Dutch population in January 1994. The main topic of the questionnaire is the evaluation of changes in the pension system that have varying income effects for different generations. We find that young and middle-aged people indeed seem to be affected by feelings of altruism and fairness whereas the elderly appear to be non-altruistic.
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Suggested Citation

  • van der Heijden, E.C.M. & Nelissen, J.H.M. & Verbon, H.A.A., 1997. "Altruism and fairness in a public pension system," Other publications TiSEM c206e707-7243-4b38-b3c8-3, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:c206e707-7243-4b38-b3c8-3db3dd1a3202
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    References listed on IDEAS

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    1. van der Heijden, E.C.M., 1995. "Opinions Concerning Pension Systems : An Analysis of Dutch Survey Data," Other publications TiSEM bebc7d34-3dbc-4f84-abb8-8, Tilburg University, School of Economics and Management.
    2. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    3. Ernst Fehr & Georg Kirchsteiger & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 437-459.
    4. van der Heijden, E.C.M., 1995. "Opinions Concerning Pension Systems : An Analysis of Dutch Survey Data," Discussion Paper 1995-22, Tilburg University, Center for Economic Research.
    5. Veall, Michael R., 1986. "Public pensions as optimal social contracts," Journal of Public Economics, Elsevier, vol. 31(2), pages 237-251, November.
    6. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    7. Piron, Robert & Fernandez, Luis, 1995. "Are fairness constraints on profit-seeking important?," Journal of Economic Psychology, Elsevier, vol. 16(1), pages 73-96, March.
    8. van der Heijden, E.C.M., 1996. "Altruism, fairness and public pensions : An investigation of survey and experimental data," Other publications TiSEM e9f4373e-0385-4c8d-98d9-3, Tilburg University, School of Economics and Management.
    9. Burrows, Paul & Loomes, Graham, 1994. "The Impact of Fairness on Bargaining Behaviour," Empirical Economics, Springer, vol. 19(2), pages 201-221.
    10. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    11. Frey, Bruno S. & Pommerehne, Werner W., 1993. "On the fairness of pricing -- An empirical survey among the general population," Journal of Economic Behavior & Organization, Elsevier, vol. 20(3), pages 295-307, April.
    12. Binmore, K & Shaked, A & Sutton, J, 1985. "Testing Noncooperative Bargaining Theory: A Preliminary Study," American Economic Review, American Economic Association, vol. 75(5), pages 1178-1180, December.
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    Citations

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    Cited by:

    1. Yosr Abid Fourati & Cathal O'Donoghue, 2009. "Eliciting Individual Preferences for Pension Reform," Working Papers 0150, National University of Ireland Galway, Department of Economics, revised 2009.
    2. Butler, M., 1998. "The Choice Between Pension Reform Options," Other publications TiSEM 550320dc-f574-4eb2-bd50-4, Tilburg University, School of Economics and Management.
    3. Tyran, Jean-Robert & Sausgruber, Rupert, 2006. "A little fairness may induce a lot of redistribution in democracy," European Economic Review, Elsevier, vol. 50(2), pages 469-485, February.
    4. van der Heijden, E.C.M. & Nelissen, J.H.M. & Potters, J.J.M. & Verbon, H.A.A., 1995. "Transfers and reciprocity in overlapping generations experiments," Discussion Paper 1995-110, Tilburg University, Center for Economic Research.
    5. van der Heijden, E. C. M. & Nelissen, J. H. M. & Potters, J. J. M. & Verbon, H. A. A., 1998. "Transfers and the effect of monitoring in an overlapping-generations experiment," European Economic Review, Elsevier, vol. 42(7), pages 1363-1391, July.
    6. Tyran, Jean-Robert, 2004. "Voting when money and morals conflict: an experimental test of expressive voting," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1645-1664, July.
    7. Butler, Monika, 2000. "The political feasibility of pension reform options: the case of Switzerland," Journal of Public Economics, Elsevier, vol. 75(3), pages 389-416, March.

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    More about this item

    JEL classification:

    • 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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