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Crisis and Pension System Design in the EU: International Spillover Effects Via Factor Mobility and Trade

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  • Igor Fedotenkov

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  • Lex Meijdam

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Abstract

Many European Union states have adjusted pension benefits or reformed the pension system in reaction to the recent economic crisis, while other member states have postponed this type of adjustments. In this paper we study to what extent countries that responded quickly to the crisis are harmed by the lingering in other member states via international spillover effects caused by factor mobility and trade. We show that this depends crucially on the degree of labour mobility in the short run. In fact, countries with more flexible pensions can benefit from the inflexibility of pensions in other countries if they can temporarily limit immigration. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Igor Fedotenkov & Lex Meijdam, 2013. "Crisis and Pension System Design in the EU: International Spillover Effects Via Factor Mobility and Trade," De Economist, Springer, vol. 161(2), pages 175-197, June.
  • Handle: RePEc:kap:decono:v:161:y:2013:i:2:p:175-197
    DOI: 10.1007/s10645-013-9207-3
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:4:p:1028-:d:138897 is not listed on IDEAS
    2. Lijian Wang & Daniel Béland, 2014. "Assessing the Financial Sustainability of China’s Rural Pension System," Sustainability, MDPI, Open Access Journal, vol. 6(6), pages 1-20, May.
    3. Igor Fedotenkov, 2014. "Pension Reform, Factor Mobility and Trade with Country-Specific Goods," De Economist, Springer, vol. 162(3), pages 247-262, September.
    4. repec:gam:jsusta:v:10:y:2018:i:8:p:2891-:d:163868 is not listed on IDEAS

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