Pension Wealth and the Gender Wealth Gap. A new GLO Discussion Paper by GLO Fellow Eva Sierminska, GLO Affiliate Karla Cordova & Markus Grabka.

A new GLO Discussion Paper shows for Germany that while the relative raw gender wealth gap is about 35% (or 31,000 euros) when analyzing the standard measure of net worth, it shrinks to 28% when pension wealth is added. 

GLO Discussion Paper No. 1167, 2022

Pension Wealth and the Gender Wealth Gap  Download PDF
by Cordova, Karla & Grabka, Markus & Sierminska, Eva

GLO Fellow Eva Sierminska & GLO Affiliate Karla Cordova

Author 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 collecting 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 recentered in uence 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%.

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JUST PUBLISHED
Vol. 35, Issue 4, October 2022: Journal of Population Economics (JOPE): 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-4
Just released: CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021)! LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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