This project examines the effect of pension reforms in Switzerland on spouses’ labour market participation (who is in paid employment and with what work-time percentage) and on divorce patterns. The aim is to assess if and to what extent the pension reforms have an impact on gender equality.
Background
In Switzerland, the old-age pension scheme was fundamentally reformed in the 1990s. In particular, rights to a pension changed decisively for married persons. The 10th revision of the Old-Age and Survivors’ Insurance (OASI; in German AHV) introduced individual accounts, splitting of pension benefits between spouses, and bonus credits for caregiving (child rearing). Furthermore, with the revision of the divorce law, in the occupational retirement scheme (2nd pillar) the splitting of retirement capital was introduced in the case of divorce. In both schemes, the goal behind the changes was to better recognise the non-monetary contribution in the form of child rearing by the secondary wage earner by redistributing pension entitlements from the main earner to the secondary earner.
Aim
The project focuses on the effects of these reforms in theory and in empirical facts. By using an economic model, it will examine the incentive effects of social security reforms on labour market participation of married couples and on divorce patterns. In the empirical investigation, the behaviour of individuals and couples before and after the reforms will be compared. For this purpose, data on motives, knowledge, satisfaction and balance of power within the family before and after divorce will be collected by means of court records, discussions with specialists (lawyers, judges) and interviews with divorced couples. Changes in paid employment and the divorce rate will be examined based on data from the OASI and the Swiss Labour Force Survey (SLFS/ESPA/SAKE).
Significance
The OASI and the occupational retirement scheme administer a large part of the joint life income and redistribute it. They therefore provide incentives for important decisions during the economically active phase of life and thus impact the actual equality of men and women. The analyses will provide legislators, administration and other groups interested in shaping policy with important information on possible effects of the policy measures that they design and implement.
Original title: Familienbildung und Arbeitsmarktpartizipation im Lichte von Sozialversicherungsreformen
Grant: CHF 208‘084.-
Duration: 28 months
Project leaders
- Professor Monika Bütler, Schweizerisches Institut für Empirische Wirtschaftsforschung (SEW-HSG), University of St. Gallen
- Professor Franz Schultheis, Seminar für Soziologie (SfS-HSG), University of St. Gallen