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Facing the age wave and economic policy: fixing public pension systems with healthcare in the wings

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  • David A. Wise

Abstract

There are two overriding problems faced by ageing societies. One is the financing of public pension (social security in US terms) programmes. The other is paying for healthcare. This paper considers the healthcare issue briefly, emphasising that the issue arises primarily because of advances in medical technology. Better medical technology will improve healthcare in the future, but more advanced technologies also cost more. The focus of the rest of the paper is on the public pension problem. The emphasis is on the early retirement incentives inherent in the provisions of most public pension programmes around the world, the reduction in the labour force participation of older people caused by these incentives, and the large fiscal implication of the inducement of older people to leave the labour force. These results are based on the GruberWise ongoing international social security comparison project.

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Bibliographic Info

Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 26 (2005)
Issue (Month): 1 (April)
Pages: 5-34

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Handle: RePEc:ifs:fistud:v:26:y:2005:i:1:p:5-34

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Cited by:
  1. Caminada, Koen & Goudswaard, Kees, 2005. "Budgetary costs of tax facilities for pension savings: an empirical analysis," MPRA Paper 20735, University Library of Munich, Germany.
  2. Glomm, Gerhard & Jung, Juergen & Tran, Chung, 2009. "Macroeconomic implications of early retirement in the public sector: The case of Brazil," Journal of Economic Dynamics and Control, Elsevier, vol. 33(4), pages 777-797, April.
  3. Koen Caminada & Kees Goudswaard, 2008. "Revenue Effects of Tax Facilities for Pension Savings," Atlantic Economic Journal, International Atlantic Economic Society, vol. 36(2), pages 233-246, June.
  4. Carmichael, F. & Charles, S. & Hulme, C., 2010. "Who will care? Employment participation and willingness to supply informal care," Journal of Health Economics, Elsevier, vol. 29(1), pages 182-190, January.

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