Forced reduction of pension contribution rate?

Andras Simonovits
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Andras Simonovits: Institute of Economics Centre for Economic and Regional Studies, Hungarian Academy of Sciences also Mathematical Institute of Budapest University of Technology

No 1811, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: Due to various causes, the pension contribution rate can be reduced temporarily below its long-term value. We call a reduction forced if the balance of the public pension system is preserved through excessive wage-hikes and irritable relative devaluation of pensions in progress. A very simple overlapping cohorts model shows the limits of this policy and the resulting unfairness among cohorts.

Keywords: public pensions; pension contribution rate; indexation; fairness among cohorts (search for similar items in EconPapers)
JEL-codes: D10 H55 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2018-06
New Economics Papers: this item is included in nep-age
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