scholarly journals Pension policies in a model with endogenous fertility

2018 ◽  
Vol 19 (1) ◽  
pp. 109-125 ◽  
Author(s):  
GIAM PIETRO CIPRIANI ◽  
FRANCESCO PASCUCCI
Keyword(s):  
Overlapping Generations ◽  
Pension System ◽  
Retirement Age ◽  
Endogenous Fertility ◽  
Contribution Rate ◽  
Negative Effects ◽  
Overlapping Generations Model ◽  
The Social ◽  
Policy Measures ◽  
Set Up

AbstractWe set up an overlapping-generations model with endogenous fertility to study pensions policies in an ageing economy. We show that an increasing life expectancy may not be detrimental for the economy or the pension system itself. On the other hand, conventional policy measures, such as increasing the retirement age or changing the social security contribution rate could have undesired general equilibrium effects. In particular, both policies decrease capital per worker and might have negative effects on the fertility rate, thus exacerbating population ageing.

scholarly journals Incentives to retire later – a solution to the social security crisis?

2002 ◽  
Vol 1 (2) ◽  
pp. 111-130 ◽  
Author(s):  
FRIEDRICH BREYER ◽  
MATHIAS KIFMANN
Keyword(s):  
Social Security ◽  
Pension System ◽  
Retirement Age ◽  
Negative Effects ◽  
Social Security Systems ◽  
Security Systems ◽  
Long Run ◽  
The Social ◽  
Unfunded Social Security ◽  
Increasing Function

As one possible solution to the well-known financing crisis of unfunded social security systems, an increase in the retirement age is a popular option. To induce workers to retire later, it has been proposed to strengthen the link between retirement age and benefit level. The present paper is devoted to analyzing the long-run financial implications of such a reform. We show that with actuarial adjustments the long-run contribution rate is an increasing function of the retirement age chosen by workers. Moreover, the implicit tax paid to the pension system by a participant can increase in the long run if the retirement age rises in response to a ‘steep’ adjustment rule. In this sense, the proposed ‘cure’ may worsen the disease. Finally, we show how the negative effects can be avoided by forming a capital stock from the additional revenues due to later retirement.

scholarly journals INCOME INEQUALITY, MOBILITY, AND THE WELFARE STATE: A POLITICAL ECONOMY MODEL

2012 ◽  
Vol 17 (6) ◽  
pp. 1198-1226 ◽  
Author(s):  
Luca Bossi ◽  
Gulcin Gumus
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Social Insurance ◽  
Overlapping Generations ◽  
Tax Rates ◽  
Overlapping Generations Model ◽  
Public Programs ◽  
Transfer Payments ◽  
Set Up ◽  
The Welfare State

In this paper, we set up a three-period stochastic overlapping-generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.

Transitioning to a higher retirement age with exponential and quasi-hyperbolic discounters in mixed economies

2020 ◽  
Author(s):  
Sarah Lynne Salvador Daway-Ducanes
Keyword(s):  
Overlapping Generations ◽  
Hyperbolic Discounting ◽  
Welfare Effects ◽  
Retirement Age ◽  
Tax Rate ◽  
Welfare Impacts ◽  
The Social ◽  
Welfare Implications ◽  
Pension Benefits ◽  
Exponential Discounting

Abstract This paper analyses the macroeconomic and welfare effects of a higher retirement age within a dynamic overlapping generations framework, wherein exponential discounting and sophisticated quasi-hyperbolic discounting agents coexist in ‘mixed economies’. The transitional dynamics of economic aggregates depend on the proportion of QHD agents, and the extent to which reducing the social security tax rate mitigates crowding-out effects on savings and enables both lower pension contributions and higher pension benefits. Welfare impacts across agent types and cohorts differ accordingly: QHD agents employ the higher retirement age as a commitment mechanism to mitigate the adverse welfare implications of present-biasedness.

scholarly journals Reversing the Malthusian paradigm on retirement age

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Patrick Deboosere ◽  
Hadewijch Vandenheede
Keyword(s):  
Pension System ◽  
Retirement Age ◽  
Supply Side ◽  
Dependency Ratio ◽  
Age Composition ◽  
Demographic Indicators ◽  
The Social ◽  
Productivity Increase ◽  
Il Y A ◽  
Economic Thinking

RésuméLa démographie a toujours influencé la pensée politique. La décision récente d’aug­menter l’âge à la pension dans beaucoup de pays développés est inspirée par l’évo­lution importante de la composition par âge de la population. Mais il y a en réalité peu d’arguments pour augmenter l’âge à la retraite si l’on tient compte de l’ensem­ble des données démographiques et économiques. Une interprétation souvent trop simpliste et même parfois erronée d’indicateurs démographiques contribue à cette démarche. L’utilisation systématique d’indicateurs démographiques dans la discussion sur la viabilité du système des pensions et de la sécurité sociale est selon nous souvent inspirée par la théorie de l’économie de l’offre. Un aspect crucial est le fait que la croissance de la productivité est ignorée ou minimisée. À cet égard, la discussion actuelle présente une profonde similitude avec l’approche Malthusienne de la population.AbstractDemography always influenced political thinking. The recent decision to increase the age of retirement in many high-income countries is driven by a dramatic chan­ge in the age composition of the population. We argue that there is in fact no need to increase the age of retirement and that many aspects of the current evolution both in demography and in economy are overlooked. Moreover, some demographic indicators such as life expectancy or the dependency ratio are often interpreted in a simplistic and erroneous way. The systematic use of demographic indicators to discuss the sustainability of the pension system and of the social security system is in our view often inspired by the supply-side way of economic thinking. A crucial aspect is that productivity increase is ignored or minimalized in the discussion. In this regard the discussion has many similarities with the Malthusian approach of the population question.

scholarly journals ANALYSIS OF THE RELATIONSHIP BETWEEN WORKING TIME AND RETIREMENT TIME IN THE NUTS 2 REGIONS OF HUNGARY IN THE LIGHT OF GENDER AND REGIONAL DISPARITIES

2020 ◽  
Vol 8 (12) ◽  
pp. 309-320
Author(s):  
Felix A. Dorstelmann ◽  
Keyword(s):  
Life Expectancy ◽  
Pension System ◽  
Adult Life ◽  
Regional Disparities ◽  
Working Time ◽  
Retirement Age ◽  
Average Life Expectancy ◽  
Policy Measures ◽  
The Difference ◽  
And Gender

This paper examined the effects of raising the statutory retirement age at NUTS 2 levels, differentiated by gender in Hungary. The evaluation criterion was the ratio of working time to retirement time concerning adults average life expectancy. This criterion was used to examine whether and to what extent regional and gender disparities exist at NUTS 2 levels and whether these disparities should be considered in policy measures. The empirical results indicated differences between the genders and regions regarding the burden of raising the retirement age. Women spend more time in retirement than men in terms of average adult life expectancy. This finding illustrates the difference in life expectancy between the sexes in Hungary. Besides, regional disparities in participation in the pension system have been observed for both women and men. These disparities can cause unintended distributional effects when the retirement age is increased. In this context, it is recommended that further policy measures are taken to address gender and regional disparities.

Policy and experiences of professional integration of young immigrants in the Walloon region (Belgium)

2004 ◽  
Vol 1 (1) ◽  
pp. 11-25
Author(s):  
Altay Manco
Keyword(s):  
Social Integration ◽  
Role Models ◽  
Integration Policy ◽  
The Public ◽  
The Social ◽  
Policy Measures ◽  
Sub Saharan ◽  
Set Up ◽  
The 1960S ◽  
Walloon Region

This paper aims to identify obstacles to integration of young foreigners in the Walloon region and more generally in Belgium as a whole while presenting in a critical manner the actions undertaken by the local and/or regional actors and the public policies aimed at overcoming these obstacles. Since the 1960s, North Africans, Turkish and Sub-Saharan immigrants and their families have constituted the major component of non-European inflows into Belgium. It has been proved that youths of immigrant descent, in the absence of positive parental role models, often experience difficulties in breaking into the work arena. General initiatives that address the entire population groups experiencing difficulty with employment are inadequate as far as the social integration of foreigners is concerned. In order to go beyond local pilot initiatives and the experimental phase, the Walloon Region has set up integration policy measures for foreigners in the framework of the Centres régionaux d'intégration (CRI) , created under the Decree of 4th July 1996. The action of professional social integration handled by the CRI gives an impression of vagueness in the accomplishment of its role: frontline or rearguard, socio-professional or general integration, local or "trans-regional work".

Retirees without pensions and welfare: The social effects of pension privatization in Poland

2017 ◽  
Vol 38 (2) ◽  
pp. 407-417 ◽  
Author(s):  
Piotr Żuk ◽  
Paweł Żuk
Keyword(s):  
Pension System ◽  
The Elderly ◽  
Social Effects ◽  
Retirement Age ◽  
Right Wing ◽  
Complete Elimination ◽  
The Social ◽  
The Future ◽  
Law And Justice ◽  
The Right

This article describes the chaos caused by the 1999 privatization of the pension system in Poland. The recent measures taken by the right-wing populist government of the Law and Justice (PiS) party, which reduced the retirement age and announced the complete elimination of ‘open’ (private) pension funds at the end of 2016, have not improved the situation of present and future retirees. Various forecasts show that the elderly will not be able to count on state aid in the future. The future of retired women (who tend to be less economically active) and those employed on ‘junk contracts’, from which social security contributions were not deducted, seems to be completely hopeless.

scholarly journals The Social Policy Response to COVID-19 – The Failure to Help Vulnerable Children and Elderly People

2021 ◽  
Author(s):  
Tom Christensen
Keyword(s):  
Social Policy ◽  
Elderly People ◽  
Vulnerable Groups ◽  
Negative Effects ◽  
Old People ◽  
Vulnerable Children ◽  
Health Concerns ◽  
The Social ◽  
Big Picture ◽  
Policy Measures

AbstractNorway’s handling of COVID-19 has been seen as a success. Vulnerable groups among young and elderly people, have however, not been part of this success. Their interests have been defocused in two ways. First, they have not been prioritized in the big picture, because the precautionary principle and health concerns, in particular the capacity questions, have dominated. Second, the more specific social policy measures have been indirect and not particular targeted vulnerable children, youths and old people, and had negative effects for them, such as social isolation and lack of daily support and services, resulting in increasing problems.

MORTALITY DECLINE, RETIREMENT AGE, AND AGGREGATE SAVINGS

2014 ◽  
Vol 20 (3) ◽  
pp. 715-736 ◽  
Author(s):  
Yanyou Chen ◽  
Sau-Him Paul Lau
Keyword(s):  
Life Expectancy ◽  
Overlapping Generations ◽  
Survival Function ◽  
Mortality Decline ◽  
Retirement Age ◽  
Overlapping Generations Model ◽  
Future Behavior ◽  
Life Expectancy Increase ◽  
One Year ◽  
Endogenous Retirement

We use an overlapping-generations model with endogenous retirement and saving to study the trade-off between saving and retirement age in response to mortality decline. When life expectancy increases by one year, people delay retirement by about four months. With this magnitude of delay in retirement age, the percentage of lifetime spent in working decreases, and people have to save more for postretirement years. Neither the pure form of sole adjustment through savings nor the proportionality hypothesis is consistent with our results, but the proportionality hypothesis is a better rule of thumb in predicting future behavior. Our choice of the modified Boucekkine et al. (2002) survival function gives a convenient one-to-one correspondence between life expectancy increase and a change in the survival parameter.

scholarly journals (IN) contributory justice in the general social security regime: RGPS from the point of view of actuarial science from the point of view of income and the actuarial social security factor

2019 ◽  
pp. 135-161
Author(s):  
Matheus Carneiro Rocha ◽  
Jamille Carla Oliveira Araújo ◽  
Neuma Teixeira Dos Santos
Keyword(s):  
Social Security ◽  
Point Of View ◽  
Retirement Age ◽  
Actuarial Science ◽  
Contribution Rate ◽  
Retirement Benefits ◽  
Matlab Program ◽  
Security Regime ◽  
The Social ◽  
Very High

Issues related to public social security have generated widedebate between society and government. The average citizen cares about the fair measure between what he pays in the present and how much he will receive from retirement in the future. In view of this, this article aims to define according to the foundations of actuarial science, the fair measure between the value of contributions (payments) and the value of benefits (retirement) managed by the General Social Security Regime – RGPS as a tool of social (in)justice. The methodology used to obtain all parameters relevant to the RGPS as well as to the actuarial social security regime was the creation of situations involving men and women under specific conditions of entry into the social security system of initial age, retirement age and contribution salary and from these input data, the values of contribution and benefits were calculated through the Matlab program , where calculations were operationalized as a calculation routine. The results were segmented by gender (male or female) and income range, it was observed that social security contribution rate, the most important parameter to define the value of contributions to the RGPS, from 28% to 31% is very high in comparison with the rate calculated by actuarial science of 16% to 17% for men and 13% to 14% for women. It is concluded that for the ordinary citizen subject to the rules of the RGPS in force, the amounts of the contributions paid that reflect the retirement benefits received differ from the fair measure, calculated by actuarial science, therefore, it was not observed factors that attest that the RGPS is fair to the taxpayer and therefore to society.

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