Bridging Partner Lifecycle Earnings and Pension Gaps by Sharing NDC Accounts
Sweden’s gender pension gap is about 33 percent at retirement, reflecting the gender earnings gap – itself a reflection of a structural gender difference in low-pay jobs for women and men and career advancement opportunities. The individual nonfina...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/165841556876702130/Bridging-Partner-Lifecycle-Earnings-and-Pension-Gaps-by-Sharing-NDC-Accounts http://hdl.handle.net/10986/31649 |
| Summary: | Sweden’s gender pension gap is about 33
percent at retirement, reflecting the gender earnings gap –
itself a reflection of a structural gender difference in
low-pay jobs for women and men and career advancement
opportunities. The individual nonfinancial defined
contribution (NDC) account data examined show that the
allocation of time to informal care work in the home versus
formal market work is the main determinant of the gaps. A
case is presented for sharing accounts as the default,
making the cost of women’s time in home care explicit and
negotiable, reducing the minimum guarantee pension’s role as
an implicit tax-financed spousal subsidy. The paper also
analyzes the likelihood of needing a guarantee and the
effect of sharing under various circumstances. |
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