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Pension Wealth and the Gender Wealth Gap

Aufsätze referiert extern - Web of Science

Karla Cordova, Markus M. Grabka, Eva Sierminska

In: European Journal of Population im Ersch. (2022), [Online first: 2022-08-22]

Abstract

We examine the gender wealth gap with a focus on pension wealth and statutory pension rights. By taking into account employment characteristics of women and men, we are able to identify the extent to which the redistributive effect of pension rights reduces the gender wealth gap. The data for our analysis come from the German Socio-Economic Panel (SOEP), one of the few surveys that collects information on wealth and pension entitlements at the individual level. Pension wealth data are available in the SOEP for 2012 only. While the relative raw gender wealth gap is about 35% (or 31,000 euros) when analysing the standard measure of net worth, it shrinks to 28% when pension wealth is added. This reduction is due to redistributive elements such as caregiver credits provided through the statutory pension scheme. Results of a recentred influence functions (RIF) decomposition show that pension wealth reduces the gap substantially in the lower half of the distribution. At the 90th percentile, the gender wealth gap in net worth and in augmented wealth remains more stable at roughly 27–30%.

Markus M. Grabka

Board of Directors SOEP & Acting Division Head Knowledge Transfer in the German Socio-Economic Panel study Department



JEL-Classification: H55;D31;J16
Keywords: Gender wealth gap, pension entitlements, Germany, redistribution, SOEP Socio-Economic Panel (SOEP)
DOI:
https://doi.org/10.1007/s10680-022-09631-6

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