Political Parties and Pension Generosity in Times of Permanent Austerity

Abstract The quantitative strand of social policy research suffers from a double deficit: on the one hand, analyses of aggregate expenditure dominate, and on the other hand, most studies of replacement rates focus on unemployment or sickness benefits, while pensions are excluded. This paper addresses the said deficit firstly by discussing the pension sectors’ theoretical peculiarities and by proposing two hypotheses: one on the retrenchment of pension replacement rates and one on the role played by political parties in implementing it. Secondly, after a brief literature review and an outline of our methodological approach, we present regression results of replacement rate changes in 18 developed democracies. Our findings show considerably smaller cuts of pensions than of unemployment or sickness benefits, and striking differences regarding partisan effects between the sectors.