Gender pension gap reinforces income inequality between men and women of retirement age

Abstract

"In 2014, the Gender Pension Gap amounted to 42 percent in West Germany and 23 percent in East Germany; in this report, we identify and simulate this gap for four different cohorts. According to our calculations, the Gender Pension Gap for the youngest cohort will be roughly 15 percentage points lower than that of the oldest. There are several reasons for this difference: the existing Gender Pay Gap; the lower education levels among women in the older cohorts; the lower employment rate and number of working hours among women; family-related career breaks for mothers; and the fact that many women have jobs in poorly paid sectors. Better childcare offerings for toddlers and schoolchildren would go a long way toward increasing women's labor participation and reducing the Gender Pension Gap; as well, policy must continue to promote institutional equality between men and women while pursuing pay equity." (Author's abstract, IAB-Doku) ((en))

Cite article

Grabka, M., Jotzo, B., Rasner, A. & Westermeier, C. (2017): Der Gender Pension Gap verstärkt die Einkommensungleichheit von Männern und Frauen im Rentenalter. In: DIW-Wochenbericht, Vol. 84, No. 5, p. 87-96.