A Reexamination of Basic Pension Reform Financed by a Consumption Tax: An Analysis Using the Right-to-Manage Model
AbstractThis paper examines pension premiums and a consumption tax as ways to finance basic pensions. The union wage model suggests that labor wage taxation increases the rate of unemployment. Using the right-to-manage model, it becomes clear that an increase in premiums for labor wages actually leads to increased unemployment rates. Furthermore, I argue that by decreasing premiums and introducing consumption tax for basic pension, the rate of unemployment will decrease. However, the study revealed that this basic pension reform would decrease benefits to individuals because of the additional charges.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 09-08.
Length: 23 pages
Date of creation: Feb 2009
Date of revision:
Pension; Unemployment; Union; Right-to-manage model;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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