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The Evaluation of Pension Reforms in the Public Sector: A Case Study of the Paris Subway Drivers

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  • Touria Jaaidane
  • Robert J. Gary-Bobo

Abstract

The actuarial cost of a worker, per year of service, is the expected discounted sum of net real wages and pension benefits earned by a worker over her life cycle, divided by the number of years of service. We show the possibility of reforms such that (i) the actuarial cost of a worker per year of service is reduced, (ii) the utility of workers does not decrease, and (iii) the pension fund deficits do not increase. We propose a quantitative analysis of the 2008 reform of the Paris Metro pensions as an illustration.

Suggested Citation

  • Touria Jaaidane & Robert J. Gary-Bobo, 2018. "The Evaluation of Pension Reforms in the Public Sector: A Case Study of the Paris Subway Drivers," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 174(2), pages 245-277, June.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201806)174:2_245:teopri_2.0.tx_2-m
    DOI: 10.1628/093245617X14930170168698
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    References listed on IDEAS

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    More about this item

    Keywords

    pensions; pay as you go; defined benefits; reform; transportation workers; actuarial cost; public subsidies;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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