The intragenerationally redistributive effects of the retirement insurance scheme in Turkey before and after the 1999 reform


Karayel A.

APPLIED ECONOMICS, cilt.38, ss.441-448, 2006 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 38 Konu: 4
  • Basım Tarihi: 2006
  • Doi Numarası: 10.1080/00036840500393001
  • Dergi Adı: APPLIED ECONOMICS
  • Sayfa Sayıları: ss.441-448

Özet

The paper analyses the intragenerational redistribution generated by the retirement insurance scheme in Turkey before and after the 1999 reform. Previous research shows that when a pension scheme's contribution and benefit schedules are proportional, the existence of an intergenerational redistribution is a precondition for the existence of an intragenerational redistribution, but that, otherwise, redistribution within a generation is possible without intergenerational redistribution. The main finding of this work is that the existence of the intergenerational redistribution is still a precondition for the old pension scheme despite its disproportional benefit schedule. Under the assumptions used, both of the schemes redistribute from high-wage earners to low-wage earners among women, but redistribute differently among men. Among men, the old scheme generates indeterminable transfers, although the new scheme redistributes from low-wage earners to high wage-earners. The analysis takes into account a hypothetical distribution of wages.