Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110989
Authors: 
Corneo, Giacomo
Schröder, Carsten
König, Johannes
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper, School of Business & Economics: Economics 2015/18
Abstract: 
We empirically investigate the distributional consequences of the Riester scheme, the main private pension subsidization program in Germany. We find that 38% of the aggregate subsidy accrues to the top two deciles of the population, but only 7.3% to the bottom two. Nonetheless the Riester scheme is almost distributionally neutral when looking at standard inequality measures. This is due to two offsetting effects: a progressive one stemming from the subsidy schedule and a regressive one from voluntary participation. Regressions of the participation decision suggest that a high level of household wealth significantly increases the probability of benefiting from the Riester scheme.
Subjects: 
saving subsidies
retirement plans
income distribution
JEL: 
D31
H55
J32
D14
I38
Document Type: 
Working Paper

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