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F: Angewandte Wirtschaftswissenschaften
Negative Correlation between Retirement Age and Contribution Length?
Oxford Economic Papers, vol. 71, no. 4, pp. 1050-1070
Though never stated explicitly, there is a hidden hypothesis that in a normal pension system, the retirement age and the length of contribution are strongly and positively correlated. We compare the time paths of male and female correlation coefficients in Austria, Germany, Hungary and Sweden for several years and categories; and obtain a mixed picture. Hungary and Austria stand out with their strong negative correlation but the remaining two countries cannot boast with strongly positive correlation, either. Further work is needed to understand the significance of our findings but they signal some problems with these systems: heterogeneously fragmented careers and unfair benefit rules.