Publication: Gender-Differentiated Impacts of Pension Reform
Date
2004-04
ISSN
Published
2004-04
Author(s)
van Selm, Alexandra
Abstract
Many countries have initiated pension
reform to cope with aging populations and fiscally
unsustainable pension systems. The reforms often aim to
separate the safety net and savings functions of pension
systems, and to minimize incentive distortions. They usually
involve moving from a single public pillar to a multipillar
system, with the latter consisting of a private pillar (with
defined contributions) and a more targeted public pillar
(with defined benefits). Gender issues arise in pension
design because men and women have different employment
histories and life expectancies. Women tend to have shorter
histories in the formal labor market because they take time
off to care for children and are permitted to retire earlier
than men. During their working years they also earn less
than men, on average (World Bank 2001). As a result, women
contribute less to pension systems than men, and are likely
to end up with smaller pensions if benefits are closely
linked to contributions-as in the defined contribution
pillar of new systems. However, the public pillar in new
systems often includes a safety net that provides a public
transfer to women.
Citation
“van Selm, Alexandra. 2004. Gender-Differentiated Impacts of Pension Reform. PREM Notes; No. 85. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/719187e1-a051-5d7e-a55c-6c2e14ee5e6f License: CC BY 3.0 IGO.”