Gendered Consequences of Divorce on Old-Age Security in Sweden and West Germany

Sarah Schmauk , Hertie School
Linda Kridahl, Stockholm University

The cohorts now reaching retirement age were affected by an increasing risk of divorce during their life course. However, while Sweden aimed at increasing economic independence of women and men to mitigate the impact of divorce on old-age security, Germany introduced the system of 'divorce splitting' to account for the imbalance between women and men. This study compares the long-term consequences of divorce on the old-age security of women and men in two contrasting welfare states, Sweden and West Germany. Using large-scale pension register data, we analyze first how divorce affects employment by constructing annual earnings histories over the life course and second, how prevailing pension regulations (e.g. caregiver credits, ‘divorce splitting’) shape individual pension entitlements in each country. Based on multiple regression models, we display how the monthly public pension income varies by family status and gender and how these trends develop over time. Our preliminary investigation shows large differences in pension entitlement by family status for women and men born between 1937-1958: In both countries, married men receive the highest pension income and divorce decreases men’s pension income. Divorced and married women in Sweden show similar pension incomes, while in Germany, divorced women have way higher pension entitlements than married women. It seems that in Germany, the system of ‘divorce splitting’ equalizes women's and men's pension income. In Sweden, divorce seems to be more severe for men's pension income. However, women generally have much lower pension entitlements than men, regardless of family status.

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 Presented in Session 18. The impact of policies on demographic outcomes