Employment Histories and Pension Incomes in Europe

In research on pensions and retirement income, it has been frequently reasoned that the economic situation in later life is determined by an interplay of individual and institutional factors. However, previous studies in this field either focus only on individual determinants or on macro-level outcomes using aggregated data. We apply a multilevel approach to examine the impact of institutional factors on the link of individual pension income and previous employment history. The underlying research question is of how national pension systems shape this relationship; whether flexible careers and atypical employment are compensated for or, on the contrary, ‘penalised’ with a low pension income. We combine the life-history data of individuals in 13 European countries from the Survey of Health, Ageing and Retirement in Europe (SHARELIFE) with macro-data on national pension systems. While we find little cross-national variation for men, for women the strength of the relationship of employment history and pension income differs between countries and is significantly moderated by factors related to the pension system.