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A simple estimation of the longevity gap and redistribution in the pension system

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It has been known for decades that in a given year and in a given country, with the rise in lifetime income, life expectancy also rises. The difference between the richest and the poorest stratas' life expectancies is called the longevity gap. Recently, as the gap has generally been growing, it has received more and more attention. The issue is important in itself, but it has also an obvious impact on redistribution in the pension system: the greater the longevity gap, the greater is the redistribution from the low benefit pensioners to the high benefit ones in a given pension system. Econometrically estimating the life expectancy-income function may help the analysis. In our short study, first we give a simple estimation, and then we show the influence of the estimate on the redistribution.

life expectancylifetime incomelongevity gapredistribution in the pension system

ANDRAS SIMONOVITS、MARIA LACKO

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Institute of Economics, Centre for Economic and Regional Studies, Budapest, Toth Kalman u. 4, H-1097 Hungary, University of Technology and Economics, Budapest, Hungary

Institute of Economics, Centre for Economic and Regional Studies, Budapest, Toth Kalman u. 4, H-1097 Hungary

2023

10.1556/032.2023.00016

Acta oeconomica: Periodical of the hungarian academy of sciences

Acta oeconomica: Periodical of the hungarian academy of sciences

ISSN：0001-6373
年,卷(期)：2023.73(2)
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