An Evaluation of the Impact of the Pension System on Income Inequality: USA, UK, Netherlands, Italy and Türkiye

Verberi C., Kaplan M.

SOCIAL INDICATORS RESEARCH, vol.174, no.3, pp.1-27, 2024 (SSCI)

  • Publication Type: Article / Article
  • Volume: 174 Issue: 3
  • Publication Date: 2024
  • Doi Number: 10.1007/s11205-024-03417-5
  • Journal Name: SOCIAL INDICATORS RESEARCH
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, FRANCIS, IBZ Online, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, Abstracts in Social Gerontology, Business Source Elite, Business Source Premier, CAB Abstracts, Communication Abstracts, EBSCO Education Source, EconLit, Geobase, Index Islamicus, Philosopher's Index, Political Science Complete, Psycinfo, Public Administration Abstracts, Social services abstracts, Sociological abstracts, Veterinary Science Database, Worldwide Political Science Abstracts
  • Page Numbers: pp.1-27
  • Istanbul University Affiliated: No

Abstract

This study examines empirically the impact of various characteristics of pension systems, in particular their quality and integrity, on income inequality, utilizing micro-level data from the United States, United Kingdom, Netherlands, Türkiye and Italy. To this end, the income inequality model, which includes public pension (or public/private pension mix), age, education, gender, marital status and employment as independent variables, has been estimated using quantile regression. The results provide a number of valuable information on the impact of the pension system on income inequality: (i) Public pension income signifcantly reduces overall income inequality across almost all inequality groups in all countries, except for the UK and the Netherlands; (ii) Diferent types of pension systems vary signifcantly in their redistributive efects on income; (iii) The empirical results also show that the efect of diferent pension systems on inequality changes by inequality groups signifcantly.