The political economy of derived pension rights

Abstract

Derived pension rights exist in most Social Security systems but with variable generosity. They are mainly targeted towards non-working wives and widows and are viewed as a means to alleviate poverty among older women living alone. The purpose of this paper is to explain how they can emerge from a political economy process when the Social Security is a combination of Bismarckian and Beveridgian pillars. It also shows that derived rights tend to encourage stay-at-home wives thus revealing an unpleasant trade-o§ between female labor participation and poverty alleviation.