Demographic Change, Endogenous Labor Supply and the Political Feasibility of Pension Reform
Options for reforming unfunded public pension schemes that are now being discussed all share the feature that the burden induced by demographic change would be shifted towards presently living and away from unborn generations. Existing models of the political economy of pension reform can not explain why such reform options are being discussed at all. We present an alternative model in which the possibility of evasion of workers from payment of social security taxes is taken into account by modelling a labor supply function. It turns out that the burden of demographic change may fall completely or at least predominantly on the pensioners. Thus this type of model can much better explain recent trends in legislature on unfunded public pension systems in industrial democracies.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2000|
|Contact details of provider:|| Postal: Mohrenstraße 58, D-10117 Berlin|
Web page: http://www.diw.de/en
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harrie Verbon & Marijn Verhoeven, 1992. "Decision making on pension schemes under rational expectations," Journal of Economics, Springer, vol. 56(1), pages 71-97, February.
- Breyer, Friedrich, 1994. "The political economy of intergenerational redistribution," European Journal of Political Economy, Elsevier, vol. 10(1), pages 61-84, May.
- Breyer, Friedrich & Craig, Ben, 1997.
"Voting on social security: Evidence from OECD countries,"
European Journal of Political Economy,
Elsevier, vol. 13(4), pages 705-724, December.
- Friedrich Breyer & Ben R. Craig, 1995. "Voting on social security: evidence from OECD countries," Working Paper 9511, Federal Reserve Bank of Cleveland.
- Lex Meijdam & Harrie Verbon, 1996. "Aging and political decision making on public pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(2), pages 141-158, June.
- Meijdam, Lex & Verbon, Harrie A A, 1996. "Aging and Political Decision Making on Public Pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(2), pages 141-158, May.
- Meijdam, A.C. & Verbon, H.A.A., 1996. "Aging and political decision making on public pensions," Other publications TiSEM 30434a77-0d7a-4d11-8fbd-3, Tilburg University, School of Economics and Management.
- Meijdam, Lex & Verbon, Harrie A A, 1997. "Aging and Public Pensions in an Overlapping-Generations Model," Oxford Economic Papers, Oxford University Press, vol. 49(1), pages 29-42, January.
- Meijdam, A.C. & Verbon, H.A.A., 1995. "Aging and Public Pensions in an Overlapping-Generations Model," Discussion Paper 1995-38, Tilburg University, Center for Economic Research.
- Meijdam, A.C. & Verbon, H.A.A., 1997. "Aging and public pensions in an overlapping-generations model," Other publications TiSEM b93c8773-5708-434f-8386-6, Tilburg University, School of Economics and Management.
- Browning, Edgar K, 1975. "Why the Social Insurance Budget Is Too Large in a Democracy," Economic Inquiry, Western Economic Association International, vol. 13(3), pages 373-388, September.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp202. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.