eprintid: 2946
rev_number: 12
eprint_status: archive
userid: 52
dir: disk0/00/00/29/46
datestamp: 2015-12-02 08:24:06
lastmod: 2016-04-14 11:25:58
status_changed: 2015-12-02 08:24:06
type: conference_item
metadata_visibility: show
creators_name: Wen, Xue
creators_id: xue.wen@imtlucca.it
title: Endogenous Labor Supply, Economic Growth and Demographic Change in Pay-as-you-go and Fully-Funded Pension Systems
ispublished: unpub
subjects: HJ
divisions: EIC
full_text_status: none
pres_type: paper
abstract: We study the effects of ageing on the sustainability of the pension systems based on different funding and payment schemes: the PAYG and fully funded (FF) systems, the Beveridge (flat benefit) and Bismarck payment schemes (contribution related). We show that under different pensions systems, the sustainability of the pension system depends on different factors. In particular, given that the dominant pension system in most European countries is PAYG, we show that in the demographic trend of ageing, the commonly used policy actions such as raising tax rates distort labor supply and the capital market, thus, reduce the tax base and deteriorate the growth of the economy. Instead, structural pension reforms such as transforming PAYG systems to (partially) fully funded systems or alter the Beveridgean pension system to be more Bismarckian seem to be more efficient measures.
date: 2014
event_title: XXVI Conferenza SIEP
event_location: Pavia, Italy
event_dates: September 25th-26th, 2014
event_type: conference
refereed: FALSE
official_url: http://www.siepweb.it/siep/it/xxvi-conferenza-2014
citation:   Wen, Xue  Endogenous Labor Supply, Economic Growth and Demographic Change in Pay-as-you-go and Fully-Funded Pension Systems.  In: XXVI Conferenza SIEP, September 25th-26th, 2014, Pavia, Italy       (Unpublished)   (2014)