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Ageing-driven pension reforms

Author

Listed:
  • Jan Bonenkamp

    (APG Asset Management)

  • Lex Meijdam

    (Tilburg University)

  • Eduard Ponds

    (APG Asset Management
    Tilburg University)

  • Ed Westerhout

    () (Tilburg University
    CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

Abstract This paper stems from the observation that there are two worldwide trends, pension reform and population ageing, and asks whether the two may be related. Exploring the cases of pension reform in different countries, we find that, although they are very different, the cases share a common characteristic: they shift risks away from workers towards those who are retired. Furthermore, population ageing, by increasing the weight of the elderly relative to working generations, raises the price of intergenerational risk sharing. Combining these findings, we argue and show formally that pension reform can be seen as a welfare-best response to population ageing.

Suggested Citation

  • Jan Bonenkamp & Lex Meijdam & Eduard Ponds & Ed Westerhout, 2017. "Ageing-driven pension reforms," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 953-976, July.
  • Handle: RePEc:spr:jopoec:v:30:y:2017:i:3:d:10.1007_s00148-017-0637-0
    DOI: 10.1007/s00148-017-0637-0
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    References listed on IDEAS

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    Cited by:

    1. Westerhout, Ed, 2018. "Paying for the Ageing Crisis : Who, How and When?," Discussion Paper 2018-001, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    Population ageing; Pension reform; PAYG pensions; Funded pensions; Welfare analysis;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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