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Income Redistribution Effect Of Public Pensions Between Dynastic Families
Author(s) -
Futagami Ritsuko,
Kamada Kimiyoshi,
Tachibanaki Toshiaki
Publication year - 2002
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/1475-4991.00050
Subject(s) - economics , redistribution (election) , redistribution of income and wealth , altruism (biology) , income distribution , distribution (mathematics) , overlapping generations model , labour economics , payment , pension , population , demographic economics , microeconomics , inequality , public good , finance , mathematical analysis , demography , mathematics , sociology , politics , political science , law , psychology , social psychology
This paper investigates income transfers between dynastic families caused by a public pension system. Using Japanese data, we present simulation results based on a model in which intergenerational altruism works, and income distribution exists between and within generations. The growth rates of income and population, as well as the formulation for the determination of the contribution rate and the payment rate, are crucial to determine both the qualitative and quantitative effects. Especially, under negative income growth over generations, pay–as–you–go public pensions can cause negative income redistribution.