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Welfare effects of unfunded pension systems when labor supply is endogenous

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1993

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Straub, Martin

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https://doi.org/10.1016/0047-2727(93)90061-W
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Journal of Public Economics. 1993, 50(1), pp. 77-91. ISSN 0047-2727. eISSN 1879-2316. Available under: doi: 10.1016/0047-2727(93)90061-W

Zusammenfassung

A mandatory unfunded pension system can lead to welfare losses if the contributions are levied in such a way that the labor supply decision of the individuals is distorted. This is shown in an overlapping-generations model for a closed economy. Furthermore, it is shown that under certain conditions a gradual abolition of unfuded pensions — using lump-sum contributions in the transition phase — can lead to an intergenerational Pareto improvement. Thus the paper extends a result recently derived by Homburg for a small open economy to the closed economy case.

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330 Wirtschaft

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ISO 690BREYER, Friedrich, Martin STRAUB, 1993. Welfare effects of unfunded pension systems when labor supply is endogenous. In: Journal of Public Economics. 1993, 50(1), pp. 77-91. ISSN 0047-2727. eISSN 1879-2316. Available under: doi: 10.1016/0047-2727(93)90061-W
BibTex
@article{Breyer1993Welfa-33366,
  year={1993},
  doi={10.1016/0047-2727(93)90061-W},
  title={Welfare effects of unfunded pension systems when labor supply is endogenous},
  number={1},
  volume={50},
  issn={0047-2727},
  journal={Journal of Public Economics},
  pages={77--91},
  author={Breyer, Friedrich and Straub, Martin}
}
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