Premium
Working life and retirement pensions in Spain: The simulated impact of a parametric reform
Author(s) -
de Bustillo Rafael Muñoz,
de Pedraza Pablo,
Antón José Ignacio,
Rivas Luis Alberto
Publication year - 2011
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/j.1468-246x.2010.01385.x
Subject(s) - pension , latin americans , parametric statistics , pension system , economics , distribution (mathematics) , income distribution , retirement age , labour economics , demographic economics , political science , inequality , finance , mathematical analysis , statistics , mathematics , law
This article aims to offer an ex ante evaluation of the impact of a parametric reform of the Spanish pension system that would involve increasing the reference period used to calculate benefits, an approach proposed many times by various actors in the socio‐economic field. Such gradual change may be categorized as a non‐structural reform of the pension system. This contrasts with reforms of a structural nature that have been very popular in Latin America and elsewhere, involving the creation of defined contribution individual account schemes. As regards the parametric reform proposed in this article, the main findings indicate that it would have a small but negative impact on pension income for pensioners and would reduce income distribution.