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Pensions Systems, Redistribution and Reform Policies in European Countries


All developed countries have a Pay-as-you-Go Social Security (PAYG) system. The systems are financed through a payroll tax levied on current workers' labour income, and provide a pension benefit to retirees. In European countries, like in all developed countries, the size of these systems has increased over the last few decades. The ageing of populations represents a common challenge. All countries are introducing reforms to deal with the ageing process. There are many different features in the existing social security systems, which are important to understand both their current design and the impact of planned reform. One of these concerns their intragenerational redistributive component. Apart from the typical redistribution across generations, i.e. from young to old, the PAYG social security systems may involve redistribution within the same generation across different income levels, i.e. from rich to poor. Some systems appear to redistribute more across income groups than others.
This project aims at providing a comprehensive analysis of the intragenerational redistributive component of European social security systems, which includes an empirical analysis and a theoretical contribution, at a positive and normative level. The first objective is to provide an empirical analysis to assess the characteristics of the social security systems in European countries, in particular the degree of intragenerational redistribution in each country. I plan to use the European Commission Household Panel Data. The second objective is to provide a positive theory of the redistributive design of the social security systems. I plan to develop a bidimensional political economy model to explain contemporaneously the level of pensions and the intragenerational redistributive component, taking also into account the role of complementary pensions. The third objective is to focus on the implications for reforms, given the relations shown by the#'...

Call for proposal

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Funding Scheme

EIF - Marie Curie actions-Intra-European Fellowships
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