Veranstaltungen des DIW Berlin/
Events of DIW Berlin

30. Sept 2015

Cluster-Seminar Öffentliche Finanzen und Lebenslagen Lifetime inequality: The impact of taxation, transfers and pensions

(together with Daniel Kemptner and Victoria Prowse)
In this paper, we analyze how income taxes, transfer programs and the pension system affect inequality in lifetime income. Importantly, we consider pre-retirement and post-retirement income and thereby we extend the previous literature on lifetime inequality, which has only considered income received before retirement. We use a dynamic structural life-cycle model to derive trajectories of earnings and net income over the whole life-cycle. Based on these life-cycle profiles, we investigate the drivers of inequality in lifetime gross earnings and we study the impact of taxes, transfer and pensions on inequality in lifetime net income. We also explore how major sources of life-cycle risk, namely employment an health risks, affect life-time income and how the different fiscal programmes provide insurance for these life-cycle risks.

12:30 - 13:30
DIW Berlin (Ferdinand-Friedensburg-Raum) DIW Berlin im Quartier 110 Raum 2.2.008 Mohrenstraße 58 10117 Berlin
im DIW Berlin
Tel.: +49 30 89789 264