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Should pensions be progressive?

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  • Fehr, Hans
  • Kallweit, Manuel
  • Kindermann, Fabian

Abstract

The present paper quantitatively characterizes the consequences of rising pension progressivity in an overlapping generations model with idiosyncratic income, disability and longevity risk as well as endogenous labor supply at the intensive and extensive margin. Focusing on the German pension system which is purely earnings related, we increase the degree of progressivity and compute the optimal mix between flat and earnings-related pensions.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 63 (2013)
Issue (Month): C ()
Pages: 94-116

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Handle: RePEc:eee:eecrev:v:63:y:2013:i:c:p:94-116

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Web page: http://www.elsevier.com/locate/eer

Related research

Keywords: Stochastic OLG model; Tax-benefit linkage; Endogenous retirement; Intra-generational risk sharing; Old-age poverty;

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References

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Citations

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Cited by:
  1. Nick Draper & André Nibbelink & Johannes Uhde, 2013. "An Assessment of Alternatives for the Dutch First Pension Pillar, The Design of Pension Schemes," CPB Discussion Paper 259, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Hans Fehr & Martin Werding & Axel Börsch-Supan & Alfred Boss & Jörg Asmussen & Enzo Weber & Markus Kurth, 2014. "Geplante Rentenreform: Größere Gerechtigkeit oder falsches Signal?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 67(05), pages 03-25, 03.

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