National culture and the configuration of public pensions

S.G. van der Lecq, O.W. Steenbeek, J.A. Rivera Rozo, M.E. García Huitrón

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This paper explores the determinants of public pension plan configurations. It is argued that the level of intragenerational redistribution in public pension plans is related to a country’s cultural background. The level of intragenerational redistribution is measured by Krieger and Traub’s Bismarckian factor. The countries’ cultural background is operational- ized using cultural dimensions developed by Hofstede. The empirical results are in line with our hypotheses. Uncertainty avoidance appears to have a significant, positive associa- tion with the Bismarckian factor (low intragenerational redistribution in public pensions), whereas the relation with individualism is negative (high intragenerational redistribution). Moreover, a positive association is found between the Bismarckian factor and inflation shocks in the first half of the 20th century. While the sample size is limited, the results are robust to the inclusion of different economic, institutional, and demographic control vari- ables as well as to using alternative model specifications. These findings have important public policy implications. We argue that pension reform proposals suggesting a transfor- mation of public to private pension provision should consider the cultural background of countries.
LanguageEnglish
Pages457-479
Number of pages23
JournalJournal of Comparative Economics
Volume46
Issue number2
DOIs
StatePublished - 2018

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Redistribution
National cultures
Public pensions
Factors
Pension plans
Empirical results
Cultural dimensions
Inflation
Pension reform
Demographic economics
Inclusion
Policy implications
Uncertainty avoidance
20th century
Individualism
Private pensions
Sample size
Alternative models
Model specification
Public policy

Cite this

van der Lecq, S. G., Steenbeek, O. W., Rivera Rozo, J. A., & García Huitrón, M. E. (2018). National culture and the configuration of public pensions. Journal of Comparative Economics, 46(2), 457-479. DOI: 10.1016/j.jce.2017.05.001
van der Lecq, S.G. ; Steenbeek, O.W. ; Rivera Rozo, J.A. ; García Huitrón, M.E./ National culture and the configuration of public pensions. In: Journal of Comparative Economics. 2018 ; Vol. 46, No. 2. pp. 457-479
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van der Lecq, SG, Steenbeek, OW, Rivera Rozo, JA & García Huitrón, ME 2018, 'National culture and the configuration of public pensions' Journal of Comparative Economics, vol. 46, no. 2, pp. 457-479. DOI: 10.1016/j.jce.2017.05.001

National culture and the configuration of public pensions. / van der Lecq, S.G.; Steenbeek, O.W.; Rivera Rozo, J.A.; García Huitrón, M.E.

In: Journal of Comparative Economics, Vol. 46, No. 2, 2018, p. 457-479.

Research output: Contribution to JournalArticleAcademicpeer-review

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van der Lecq SG, Steenbeek OW, Rivera Rozo JA, García Huitrón ME. National culture and the configuration of public pensions. Journal of Comparative Economics. 2018;46(2):457-479. Available from, DOI: 10.1016/j.jce.2017.05.001