Stabilizing pay-as-you-go pension schemes in the face of rising longevity and falling fertility: an application to the Netherlands
Rising longevity and falling fertility threaten the sustainability of pay-as-you-go pension schemes. This paper shows that maintaining the intergenerational balance in the Dutch pay-as-you-go pension scheme in the face of increased longevity since the introduction of the scheme in 1957 would have required a gradual increase of the retirement age to at least 68 years for the generation born in 1945. Furthermore, we show that projected increases in labour-force participation rates do not generate sufficient additional tax revenues to subsitute for the dearth of human capital caused by falling fertility rates.
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- John B. Shoven & Gopi Shah Goda, 2010.
"Adjusting Government Policies for Age Inflation,"
NBER Chapters,in: Demography and the Economy, pages 143-162
National Bureau of Economic Research, Inc.
- Gopi Shah Goda & John Shoven, 2008. "Adjusting Government Policies for Age Inflation," Discussion Papers 08-062, Stanford Institute for Economic Policy Research.
- David Cutler & Ellen Meara, 2001. "Changes in the Age Distribution of Mortality Over the 20th Century," NBER Working Papers 8556, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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