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The unequal burden of retirement reform: Evidence from Australia

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  • Todd Morris
Abstract
As governments try to contain rising expenditure on retirement pensions by increasing eligibility ages, there are concerns that such reforms disproportionately affect poorer households. Using detailed longitudinal data, I examine this trade‐off in the context of an Australian reform that increased women’s pension‐eligibility age from 60 to 65. While this reform significantly reduced government spending on women at affected ages, the negative effects on household incomes were concentrated among poorer households. These unequal impacts meant that the reform temporarily increased relative poverty rates among affected women by around four percentage points and inequality measures by 6% to 19%.

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  • Todd Morris, 2022. "The unequal burden of retirement reform: Evidence from Australia," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 592-619, April.
    • Handle: RePEc:bla:ecinqu:v:60:y:2022:i:2:p:592-619
    DOI: 10.1111/ecin.13034
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    2. Becker, Sebastian & Buslei, Hermann & Geyer, Johannes & Haan, Peter, 2022. "The Effect of Pension Wealth on Employment," IZA Discussion Papers 15836, Institute of Labor Economics (IZA).
    3. Andrew E Clark & Rong Zhu, 2024. "Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control," The Economic Journal, Royal Economic Society, vol. 134(660), pages 1465-1493.
    4. Malavasi, Chiara & Ye, Han, 2024. "Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302374, Verein für Socialpolitik / German Economic Association.
    5. Vieira, Kelmara Mendes & Rosenblum, Tamara Otilia Amaral & Matheis, Taiane Keila, 2022. "And tomorrow, how will it be? Developing a Financial Preparation for Retirement Scale (FPRS)," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    6. repec:bon:boncrc:crctr224_2024_514 is not listed on IDEAS

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