IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v12y2000i4p519-529.html
   My bibliography  Save this article

Partial privatization of a pension system: lessons from Hungary

Author

Listed:
  • András Simonovits

    (Institute of Economics, Hungarian Academy of Sciences, Budapest, Budaörsi, Hungary)

Abstract

On 1 January 1998 a three-pillar pension system was introduced in Hungary. It will replace about a ¼ of the existing unfunded public system by a funded private system from 2013. The transition to this 'mixed system' is obligatory for those entering the labour market after 30 June 1998 and optional for the current labour force. Meanwhile the public pillar is also being reformed. This article assesses and evaluates these important developments. Contrary to expectations, the current government has made important changes to the on-going reform programme. These changes threaten to make benefit entitlements under the mixed system less attractive than envisaged. Despite significant funding problems within the unreformed public system, the partial privatization of the public system may cause more problems than it solves. Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • András Simonovits, 2000. "Partial privatization of a pension system: lessons from Hungary," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 519-529.
    • Handle: RePEc:wly:jintdv:v:12:y:2000:i:4:p:519-529
    DOI: 10.1002/1099-1328(200005)12:4<519::AID-JID688>3.0.CO;2-0
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Feldstein, Martin, 1996. "The Missing Piece in Policy Analysis: Social Security Reform," American Economic Review, American Economic Association, vol. 86(2), pages 1-14, May.
    2. Kornai, Janos, 1997. "The Reform of the Welfare State and Public Opinion," American Economic Review, American Economic Association, vol. 87(2), pages 339-343, May.
    3. Andras Simonovits, 1999. "The New Hungarian Pension System and its Problems," CERS-IE WORKING PAPERS 9901, Institute of Economics, Centre for Economic and Regional Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andras Simonovits, 2009. "Hungarian Pension System and its Reform," CERS-IE WORKING PAPERS 0908, Institute of Economics, Centre for Economic and Regional Studies.
    2. Gál, Róbert I. & Simonovits, András & Tarcali, Géza, 2001. "Generational accounting and Hungarian pension reform," Social Protection Discussion Papers and Notes 90343, The World Bank.
    3. Roger Charlton & Roddy McKinnon, 2000. "Beyond mandatory privatization: pensions policy options for developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 483-494.
    4. Soòa KILIÁNOVÁ & Igor MELICHERÈÍK & Daniel ŠEVÈOVIÈ, 2006. "A Dynamic Accumulation Model for the Second Pillar of the Slovak Pension System," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(11-12), pages 506-521, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andras Simonovits, 1999. "The New Hungarian Pension System and its Problems," CERS-IE WORKING PAPERS 9901, Institute of Economics, Centre for Economic and Regional Studies.
    2. Martin S. Feldstein & Jeffrey B. Liebman, 2002. "The Distributional Effects of an Investment-Based Social Security System," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 263-326, National Bureau of Economic Research, Inc.
    3. Leers, T. & Meijdam, A.C. & Verbon, H.A.A., 2001. "The Politics of Pension Reform Under Population Ageing," Other publications TiSEM bb03e411-061a-48e2-8a63-8, Tilburg University, School of Economics and Management.
    4. Martin Feldstein & Andrew Samwick, 1998. "The Transition Path in Privatizing Social Security," NBER Chapters, in: Privatizing Social Security, pages 215-264, National Bureau of Economic Research, Inc.
    5. Hassler, J. & Lindbeck, A., 1997. "Intergenerational Risk Sharing, Stability and Optimality of Alternative Pension Systems," Papers 631, Stockholm - International Economic Studies.
    6. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669, Elsevier.
    7. van Groezen, B.J.A.M. & Meijdam, A.C. & Verbon, H.A.A., 2002. "Social Security Reform and Population Ageing in a Two-Sector Growth Model," Other publications TiSEM 5109f2fc-ba3b-421c-89ab-9, Tilburg University, School of Economics and Management.
    8. Martin Feldstein, 1997. "Transition to a Fully Funded Pension System: Five Economic Issues," NBER Working Papers 6149, National Bureau of Economic Research, Inc.
    9. Gilles Le Garrec & Stéphane Lhuissier, 2011. "Life expectancy, heavy work and the return to education: lessons for the social security reform," SciencePo Working papers Main hal-01069511, HAL.
    10. David Miles & Ales Cerny, 2001. "Risk, Return and Portfolio Allocation under Alternative Pension Arrangements with Imperfect Financial Markets," CESifo Working Paper Series 441, CESifo.
    11. Folster, Stefan & Henrekson, Magnus, 1999. "Growth and the public sector: a critique of the critics," European Journal of Political Economy, Elsevier, vol. 15(2), pages 337-358, June.
    12. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July.
    13. Frank T. Denton & Byron G. Spencer, 1998. "Economic Costs of Population Aging," Quantitative Studies in Economics and Population Research Reports 339, McMaster University.
    14. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    15. Shiller, Robert J., 1999. "Social security and institutions for intergenerational, intragenerational, and international risk-sharing," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 50(1), pages 165-204, June.
    16. Rocha, Roberto & Vittas, Dimitri, 2001. "Pension reform in Hungary : a preliminary assessment," Policy Research Working Paper Series 2631, The World Bank.
    17. Jeffrey A. Miron & David N. Weil, 1998. "The Genesis and Evolution of Social Security," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 297-322, National Bureau of Economic Research, Inc.
    18. Magnus Henrekson & Jesper Roine, 2007. "Promoting Entrepreneurship in the Welfare State," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 5, Edward Elgar Publishing.
    19. repec:hal:wpspec:info:hdl:2441/f4rshpf3v1umfa09lat214kj4 is not listed on IDEAS
    20. Tatiana Damjanovic, 2006. "On The Possibility Of Pareto‐Improving Pension Reform," Manchester School, University of Manchester, vol. 74(6), pages 711-724, December.
    21. Andrew Mason & Ronald Lee & An-Chi Tung & Mun-Sim Lai & Tim Miller, 2009. "Population Aging and Intergenerational Transfers: Introducing Age into National Accounts," NBER Chapters, in: Developments in the Economics of Aging, pages 89-122, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:12:y:2000:i:4:p:519-529. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.