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Public Pensions in Canada

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Author Info

  • John Burbidge

Abstract

Intergenerational transfers occur within every society. Those who are able to provide for more than their own needs directly or indirectly provide resources to those who are unable to care for themselves. Each society must somehow choose from the set of all possible transfers a particular allocation that is most appealing given its procedures for making collective choices. Over the last two decades real transfers to elderly households have increased while real earnings for both men and women of working age have stagnated. A significant component of these transfers has been financed by increasing tax rates and by issuing debt. Neither of these options is sustainable indefinitely. Among other things, this paper argues on intergenerational equity grounds that the solution to the "CPP problem" lies not in raising payroll tax rates but rather in reducing benefits.

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Bibliographic Info

Paper provided by McMaster University in its series Independence and Economic Security of the Older Population Research Papers with number 1.

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Length: 39 pages
Date of creation: May 1996
Date of revision:
Handle: RePEc:mcm:iesopp:1

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Keywords: public pensions; intergenerational equity; CPP;

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Cited by:
  1. William B. P. Robson, 2001. "Six Pillars of Social Policy: The State of Pensions and Health Care in Canada," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.), The State of Economics in Canada: Festschrift in Honour of David Slater, pages 183-224 Centre for the Study of Living Standards.
  2. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Economic Costs: A Survey of the Issues and Evidence," Social and Economic Dimensions of an Aging Population Research Papers 1, McMaster University.
  3. Frank T. Denton & Byron G. Spencer, 1998. "Economic Costs of Population Aging," Quantitative Studies in Economics and Population Research Reports 339, McMaster University.
  4. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Costs: A Survey of the Issues and Evidence," Department of Economics Working Papers 1999-03, McMaster University.

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