Poverty Among the Elderly: The Role of Public Pension Systems

Philippe Jacques, Marie-Louise Leroux and Dalibor Stevanovic

Cahiers de recherche from Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques

Abstract: The objective of this paper is to measure the impact of first-pillar public pensions spending on the prevalence of poverty among the elderly. Using data from 27 European countries from 1995 to 2014, we estimate the elasticity of the poverty rate among individuals aged over 65 years to per capita public pension spending. We show the existence of a nonlinear relationship between these two variables. The elasticity is negative and statistically different from 0 only beyond a level of spending of 685 Euro per capita. At the average value of 2,819 Euro, it is estimated that the elasticity is about -1.45. This nonlinear relation is robust to the treatment of possible endogeneity and to different robustness checks like the variation of the poverty line, and the inclusion of country-specific differences in public pension plans.

Keywords: Ageing; Poverty; Income Inequalities; Public Pension Systems; Panel Data (search for similar items in EconPapers)
JEL-codes: H55 I32 I38 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-age and nep-eur
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Related works:
Journal Article: Poverty among the elderly: the role of public pension systems (2021)
Working Paper: Poverty among the elderly: The role of public pension systems (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:criacr:1807

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