Leroux, Marie-LouiseUniveristé du Québec à Montréal
Author
Pestieau, PierreUCLouvain
Author
Abstract
Derived pension rights (including survivor benefits and spousal compensations for one-earner couples) exist in most Social Security systems but with variable generosity. They are mainly viewed as a means to alleviate poverty among older women living alone. The purpose of this paper is to explain how they can emerge from a political economy process when Social Security is a combination of Bismarckian and Beveridgean pillars.We find that the pension system should be contributive but with a positive level of derived rights. We also show that such a system encourages stay-at-home wives, thus revealing an unpleasant trade-off between female labor participation and poverty alleviation.
Leroux, M.-L., & Pestieau, P. (2012). The political economy of derived pension rights. International Tax and Public Finance, 19(5), 753-776. https://doi.org/10.1007/s10797-011-9205-9 (Original work published 2012)