Unequal Ageing in Europe by Gianni Betti et al. (review)

A considerable body of literature exists on the gender pay gap but few studies have been done on the gender gap in pensions. Research only began on the question in the mid-1990s (Jefferson 2009). This book, then, is a welcome addition to the small number of existing studies, and is particularly useful in providing statistical data for international comparison, virtually non-existent until now. One reason the gender dimension has been absent from this debate is that male-female pension inequality did not necessarily result in unequal living standards upon retirement. When marriage was the predominant, stable form of conjugal life, the fact that women’s personal pensions were low was not a problem; it could be assumed that couple members would pool their income until spouse’s death, at which point the retirement system would begin paying out a survivor’s pension.

The gender pension gap became a social and research concern when a variety of changes occurred that called the afore-cited arrangements into question. First, the assumption of income pooling within the couple may not be valid, and, as the authors note, having one’s own pension is a major determinant of economic independence, especially since pensions represent the better part of income for a considerable proportion of retirees. It is therefore legitimate to enquire into the impact of labour market gender gaps at the time of retirement and how they are evolving. While women’s massive entry into the labour market has narrowed pension gaps, it is still difficult to apprehend the magnitude of that reduction and how it is going forward. Moreover, women’s rising participation in the labour force has gone together with an increase in non-standard and part-time jobs. It has occurred in the context of retirement policy reforms that have redefined pension calculation parameters, shifted emphasis from basic retirement benefits (where disparities were relatively low) to contribution plans (the second pillar), extended working years and adversely impacted on policies that directly or indirectly targeted women (i.e., family and conjugal benefits). Another reason, not directly mentioned in the book, is the increased importance of individual benefits at a time when conjugal behaviours have been undergoing profound change. When the generations implicated in the rising divorce rate or who have chosen unions other than marriage reach retirement age, they will radically alter the structure of the retired population.

After explaining why it is important to be attentive to gaps between men’s and women’s pensions, the authors present two indicators for studying them (Chapter 2). The first is the “Gender Gap in Pensions,” calculated as “one minus women’s average pension income divided by men’s average pension income”; this applies only to individuals who have a pension. The second is “the coverage rate,” which integrates persons without a retirement pension, a group that may vary proportionally by country, age and of course sex. Calculating these indicators is not as simple as it seems because of difficulties in defining retirees and pensions (e.g., should private pensions be included?), especially for the purpose of international comparison. Valid comparisons can only be made on the basis of suitable databases. The authors draw on the Survey on Income and Living Conditions or EU-SILC, a harmonised database for Europe. Further on, they enquire into the feasibility of using administrative data, pointing out that though each country may prefer to use its own administrative data to compile statistics, this may make international comparisons more difficult. But there are two drawbacks to the SILC survey when it comes to studying disparities in men’s and women’s pension levels and how they are evolving. First, the survey aggregates retirement systems’ first and second pillar pensions, whereas gaps between men’s and women’s situations may differ depending on the pillar considered. Second, survivor’s pensions are aggregated with personal pensions, making it difficult to analyse change in pension...