Michael Gorski () (University of Paderborn) Tim Krieger () (University of Paderborn) Thomas Lange () (Ifo institute for economic research & University of Konstanz)
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In a two-period model with agent heterogeneity we analyze a pension reform toward a stronger link between contributions and benefits (as recently observed in several countries) in a pension system with a Bismarckian and a Beveridgian component. We show that such a policy change reduces the educational level in an economy. The life expectancy differential between skilled and unskilled individuals drives this result. Furthermore, we investigate the consequences on the intragenerational redistribution characteristics of the pension system – in the sense of the number of net-recipients relative to net-payers – as well as welfare effects.
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Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers with number
4.
Find related papers by JEL classification: H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions I21 - Health, Education, and Welfare - - Education - - - Analysis of Education D39 - Microeconomics - - Distribution - - - Other
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