Long Lives and Old Age Poverty: Social Stratification and Life-Course Institutionalization in Switzerland

Abstract

This article combines an inter- and an intra-cohort perspective to study economic vulnerability in old age. The theoretical background is given through the combination of a social stratification framework and an institutional perspective emphasizing life course policies. At the macro level, the increase in overall education levels and the implementation of a pension system were the driving forces of the strong decrease in old age poverty over the last three decades. At an individual level, the pathway from low education early in life to economic hardship after retirement is most prominent, corresponding to a social stratification and cumulative disadvantage view.

FUNDING

This publication benefited from the support of the Swiss National Centre of Competence in Research LIVES—Overcoming Vulnerability: Life Course Perspectives, which is financed by the Swiss National Science Foundation. The authors are grateful to the Swiss National Science Foundation for its financial assistance.

Notes

¹ We tested several other variables, for example using the question “Did you have a happy childhood?” without discriminant results. We also attempted to disaggregate some indicators, such as having experienced relationship dissolution before or after age 65, but because this event does not concern many persons (330), the resulting indicators were not robust enough.

² This is because early parenthood is associated to an interruption of education resulting in a low human capital, an element that is controlled for in this model.

³ Those who were self-employed are 3.3 times more likely to be present in this cluster relative to the full sample average.

⁴ We must bear in mind that this interpretation is valid for incomes because the safety nets of the welfare state prevent the poor from becoming destitute. Targeting health vulnerabilities in old age may lead to a different conclusion.

Additional information

Funding

This publication benefited from the support of the Swiss National Centre of Competence in Research LIVES—Overcoming Vulnerability: Life Course Perspectives, which is financed by the Swiss National Science Foundation. The authors are grateful to the Swiss National Science Foundation for its financial assistance.