Preferences for inter-generational redistribution toward the young in three European countries

The paper utilizes unique and previously unexplored SHARE data to examine preferences for inter-generational redistribution favoring the younger generations. It investigates whether individuals who support reducing the generosity of the pension system are more inclined to transfer resources to the young through: (a) backing reforms that prioritize policies benefiting the young, such as active labor market policies, and (b) making inter vivos transfers to younger cohorts. The empirical analysis focuses on Belgium, Italy, and Spain, three countries with relatively unbalanced pension systems. We find that preferences for actuarially fair pension rules are correlated with the willingness of individuals to transfer to younger generations both by supporting reforms targeting the young and making intra-household inter vivos transfers. People who believe themselves to be poorer than they actually are, ceteris paribus, are transferring less. inter vivos transfers are also positively related to having been obliged to postpone retirement, altruism, and reciprocity.