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The impact of taking up care tasks on pensions: Results of typical-case simulations for several European countries

[journal article]

Bosch, Karel van den
Kirn, Tanja
Kump, Nataša
Liégeois, Philippe
Moreira, Amílcar
Stropnik, Nada
Barslund, Mikkel
Vergnat, Vincent
Dekkers, Gijs

Abstract

Informal care is often accompanied by a reduction or abandonment of professional activity by the caregiver. Therefore, caregiving may be associated with a lower pension for the former caregiver than for people without care obligations. There is a large gender difference in informal care responsibili... view more

Informal care is often accompanied by a reduction or abandonment of professional activity by the caregiver. Therefore, caregiving may be associated with a lower pension for the former caregiver than for people without care obligations. There is a large gender difference in informal care responsibilities, and this may contribute to the gender pension gap. As the impact of care-related labour market decisions depends on the design of the pension system, we carry out a cross-country comparison, in which we analyse the impact of care obligations in countries with high (Luxembourg), middle (Liechtenstein, Belgium, Portugal) and low (Slovenia) gender pension gaps. Using typical-case simulation models, we examine how the impact of care-related events is mediated by pension rules, given women's labour market decisions. To what extent does working part time or interrupting one’s career at the age of 30 or 54 reduce the later pension benefit? How are these losses mitigated by pension credits that are conditional on caregiving? We find that the mitigating effects are generally strongest in Belgium, followed by Luxembourg and Slovenia. Such credits hardly exist in Portugal, while in Liechtenstein they have only a small impact. However, the consequences of either working part time or interrupting work can also be mitigated via general rules in the system that are unrelated to caregiving (such as in Portugal and Liechtenstein). They can, on the other hand, be aggravated by the existence of higher accrual rates for individuals who extend their careers, as in Luxembourg and Slovenia.... view less

Keywords
home care; domestic assistance; housework; informal sector; gender relations; inequality; labor; gainful work; gainful employment; pension; pension claim; social security; Luxembourg; Liechtenstein; Belgium; Portugal; Slovenia; Europe; gender-specific factors

Classification
Women's Studies, Feminist Studies, Gender Studies
Social Security

Free Keywords
informal care; gender pension gap; microsimulation; EU-SILC 2016; EU-SILC 2018

Document language
English

Publication Year
2023

Page/Pages
p. 1-20

Journal
European Journal of Social Security, 26 (2023) 1

DOI
https://doi.org/10.1177/13882627231221045

ISSN
1388-2627

Status
Published Version; peer reviewed

Licence
Creative Commons - Attribution 4.0


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© 2007 - 2025 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.