Spain 2011 Pension Reform
The aim of this paper is to evaluate the impact of the Spanish pension reform enacted in 2011. We use an accounting model with heterogeneous agents and overlapping generations in order to project revenues and expenditures of the pension system for the next four decades. Specifically, we analyze the impact of changes in the replacement rate, in the period of calculation and the delay of the retirement age. We obtain results under two alternative migration scenarios: (i) a combination of the latest figures released by the INE, which forecast a reduced annual immigration net flow of some 70,000 persons; and (ii) a revised scenario featuring a more generous hypothesis concerning this net flow. We demonstrate that the results show that these three changes instigated by the reform could imply a savings of about 3 percentage points of GDP in 2051. However, we couldn't include in the evaluation the sustainability factor (that transform the Spanish system in a defined contribution scheme) that will start in 2027 due to the lack of details in the text of the Reform. Finally, we analyze the changes in average pensions by gender, skill, and nationality.
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.:
- Clara Isabel González & J. Ignacio Conde-Ruiz & Michele Boldrin, 2008.
"Immigration and Social Security in Spain,"
- Natalia Zinovyeva & Manuel F. Bagues, 2010.
"Does gender matter for academic promotion? Evidence from a randomized natural experiment,"
- Zinovyeva, Natalia & Bagues, Manuel F., 2011. "Does Gender Matter for Academic Promotion? Evidence from a Randomized Natural Experiment," IZA Discussion Papers 5537, Institute for the Study of Labor (IZA).
- Balmaseda, Manuel & Melguizo, Angel & Taguas, David, 2006.
"Las reformas necesarias en el sistema de pensiones contributivas en España
[Reforming the Spanish contributory pension system]," MPRA Paper 19574, University Library of Munich, Germany, revised 01 Mar 2006.
- Angel Melguizo & Manuel Balmaseda & David Taguas, 2005. "Las reformas necesarias en el sistema de pensiones contributivas en Espana," Working Papers 0505, BBVA Bank, Economic Research Department.
- Juan A. Rojas, "undated".
"Life-cycle Earnings Cohort Size Effects and Social Security. A Quantitative Exploration,"
Studies on the Spanish Economy
- Rojas, Juan A., 2005. "Life-cycle earnings, cohort size effects and social security: a quantitative exploration," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 465-485, February.
- Ignacio Moral-Arce & Ció Patxot & Guadalupe Souto, 2008. "La sostenibilidad del sistema de pensiones. una aproximación a partir de la MCVL," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 16(E-1), pages 29-66, Special N.
- Jimeno, Juan F. & Rojas, Juan A. & Puente, Sergio, 2008.
"Modelling the impact of aging on social security expenditures,"
Elsevier, vol. 25(2), pages 201-224, March.
- Juan F. Jimeno & Juan A. Rojas & Sergio Puente, 2006. "Modeling the impact of aging on social security expenditures," Occasional Papers 0601, Banco de España;Occasional Papers Homepage.
- Javier Alonso Meseguer & José A. Herce, "undated". "Balance del sistema de pensiones y boom migratorio en España. Proyecciones del modelo MODPENS de FEDEA a 2050," Working Papers 2003-02, FEDEA.
- Angel De la Fuente & Rafael Domenech, 2011.
"The impact of Spanish pension reform on expenditure: A quick estimate,"
1112, BBVA Bank, Economic Research Department.
- Angel de la Fuente & Rafael Doménech, 2011. "The Impact of Spanish Pension Reform on Expenditure: a Quick Estimate," Working Papers 542, Barcelona Graduate School of Economics.
When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2012-03. 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: (Carmen Arias)
If references are entirely missing, you can add them using this form.