Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/49451 
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dc.contributor.authorSchröder, Carstenen
dc.date.accessioned2011-08-26-
dc.date.accessioned2011-09-09T13:12:22Z-
dc.date.available2011-09-09T13:12:22Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/49451-
dc.description.abstractMicro-econometric intra-cohort profitability analyses of pay-as-you-go (PAYG) pension contributions are rare. We use representative employment histories of a birth cohort of German PAYG pension insurants retiring in year 2005 to econometrically examine the determinants of the profitability of such contributions using nominal internal rates of return (IRR) as profitability measure. When future nominal pension entitlements are frozen at today's level, average IRR is slightly above three percent. At the same time, IRR differs substantially across beneficiaries. IRR is increasing in beneficiaries' remaining life expectancies at retirement and in the length of non-contribution periods resulting, for example, from child care or care for an ill partner. Due to survivor pensions, married insurants benefit from higher IRR as compared to the non-married. Interestingly, IRR is decreasing in insurants' earnings capacity, indicating that the system entails an intra-cohort progressive element.en
dc.language.isoengen
dc.publisher|aDeutsches Institut für Wirtschaftsforschung (DIW) |cBerlinen
dc.relation.ispartofseries|aDIW Discussion Papers |x1057en
dc.subject.jelD02en
dc.subject.jelD14en
dc.subject.jelD39en
dc.subject.jelD91en
dc.subject.jelH55en
dc.subject.ddc330en
dc.subject.keywordPay-as-you-goen
dc.subject.keywordpensionsen
dc.subject.keywordrate of returnen
dc.subject.keywordredistributionen
dc.subject.keywordemployment biographyen
dc.subject.stwGesetzliche Rentenversicherungen
dc.subject.stwRentabilitäten
dc.subject.stwErwerbsverlaufen
dc.subject.stwVerteilungswirkungen
dc.subject.stwDeutschlanden
dc.titleProfitability of pension contributions: Evidence from real-life employment biographies-
dc.typeWorking Paperen
dc.identifier.ppn667085505en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:diw:diwwpp:dp1057en

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