Abstract
The aim of the paper is to examine the progressivity of the pension security in the Czech Republic using an intragenerational longitudinal approach. Since there is no available Czech panel data we modelled pseudo-panel data on lifetime earnings of employees on the basis of real crosssectional data. Then the present values of lifetime contributions paid to and lifetime pensions received from the system were derived from the simulated lifetime earnings. The analysis revealed that the Czech pension security redistributes the funds from the higher-income participants to the lower-income ones and from men to women. Furthermore the Gini coefficients confirmed that the scheme reduces income inequality. The results proved that the solidarity principle built in the pension formula prevails over the benefit principle, which is also present in the formula, when the benefit component is relatively more favourable for the rich employees because of the shape of the lifetime earnings function.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
