The earnings-related state pension, indexation and lifetime redistribution in the UK

Creedy, John and Disney, Richard and Whitehouse, Edward (1993) The earnings-related state pension, indexation and lifetime redistribution in the UK. Review of Income and Wealth (3). pp. 257-278. ISSN 0034-6586. (The full text of this publication is not available from this repository)

The full text of this publication is not available from this repository. (Contact us about this Publication)

Abstract

The redistributive impact of the U.K. state pension scheme is examined. Benefit-cost ratios are calculated using individual lifetime earnings profiles constructed for a cohort of men drawn from cross-section data. The scheme is investigated at maturity and revenue neutrality is imposed in order to isolate the intra-generationally redistributive effects of the pension scheme. The results suggest that differences in returns to the pension scheme are driven by differential mortality, which outweigh the redistributive effect of the two-tier benefit structure. Various reforms of the pension scheme are then simulated, and solved for revenue neutrality. The results suggest that a great deal of care is needed in formulating reforms if redistributive objectives are to be achieved.

Item Type: Article
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: R.F. Xu
Date Deposited: 18 Jul 2009 13:34
Last Modified: 01 Jul 2014 14:59
Resource URI: http://kar.kent.ac.uk/id/eprint/20857 (The current URI for this page, for reference purposes)
  • Depositors only (login required):