classification of pension systems in the eu aim work package 2 cok vrooman a comparative typology of...
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Classification of pension systems in the EU
AIM Work Package 2
Cok Vrooman
A comparative typology of pension regimes, A. Soede & C. Vrooman (2008)Enepri Research Report No. 54, www.enepri.org, www.ceps.eu
How to make European pensions adequate and sustainable? Centre for European Policy Studies, Brussels,
October 20, 2008
Research questions
• Can the various pension systems in the European Union, the US, Canada, Australia and Norway empirically be reduced to a limited number of pension regime types?
• Do pension regime types correspond with Esping-Andersen’s more general typology of welfare regimes (SD, LIB, CORP)?
• Is there a connection between pension regime types and:a) the future ageing process?b) recent differences in pension reforms (path dependency)?
How to make European pensions adequate and sustainable? Centre for European Policy Studies,
Brussels, October 20, 2008
Regimes/methodology
Regimes:• Diverging types of coherent systems of formal rules which
aim to achieve distinct collective goals.
Categorical principal components analysis (CatPCA):• Institutional data for 34 pension scheme traits (pension
level/wealth, organisation/structure, retirement age) in 23 countries
• Optimal scaling of both countries and pension scheme traits• on a limited number of uncorrelated underlying dimensions
Empirical pension regime typology: country clusters with diverging scores on interpretable
dimensions?
How to make European pensions adequate and sustainable? Centre for European Policy Studies, Brussels,
October 20, 2008
A previous ‘mixed’ typology ofsocial security and pensions, 2004
Scaling of 23countries
Based on 85 traitsof social security,pensions and labormarket
Source:Soede, Vrooman, Ferraresi & Segre (2004)
How to make European pensions adequate and sustainable?
Centre for European Policy Studies, Brussels, October 20, 2008
The pension typology: component loadings
Scaling of 34 traitsof pension systems
Based on 23 countries
Source:Soede & Vrooman (2008)
How to make European pensions adequate and sustainable?
Centre for European Policy Studies, Brussels, October 20, 2008
The pension typology:country scores
Scaling of 23countries
Based on 34 traitsof pension systems
Source:Soede & Vrooman (2008)
How to make European pensions adequate and sustainable? Centre for European Policy Studies,
Brussels, October 20, 2008
Relationship with future ageing process
How to make European pensions adequate and sustainable? Centre for European Policy Studies,
Brussels, October 20, 2008
Relationship with recent policy reforms(1990-2005)
How to make European pensions adequate and sustainable? Centre for European Policy Studies, Brussels,
October 20, 2008
Conclusions
• Pension systems in the EU c.a. can be reduced to a limited number of pension regime types.
• But: no complete correspondence with theoretical Esping-Andersen classification (only liberal, corporatist). Pension regimes are not to be equated with the welfare regimes which provide for the non-elderly.
• Regime types face different demographic challenges, e.g. corporatist group (already aged, high ageing >2025)
• Pension reforms tend to be path-dependent convergence of pension schemes within the EU is not a natural outcome