TUNISIAN PENSION SYSTEM SUSTAINABILITY: TOWARDS A MULTIDIMENSIONAL REFORM

Tahar Abdessalem () and Houyem Chekki Cherni
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Tahar Abdessalem: LEGI, Ecole Polytechnique de Tunisie

Region et Developpement, 2016, vol. 44, 165-182

Abstract: Using a computable general equilibrium model with overlapping generations we found that accounting reforms of the Tunisian pension system led to a dead end. The results point to the ineffectiveness of the reforms based only on changing pension parameters to ensure sustainability of the system. The effect of such measures will be limited, even in the short term. Such restricted impact can be attributed to the massive increase of pension system deficits, indicating that the pension situation is an undeniable urgency. Therefore, a wide-range reform of the current pension system is inevitable. In the medium and long term, a structural reform should be adopted. A new and fruitful direction of reform would consist in diversifying financing sources by expanding the contribution base for pension financing beyond labor income.

Keywords: PAY-AS-YOU-GO PENSION SYSTEM; FUNDED PENSION; AGEING POPULATION; OVERLAPPING GENERATIONS (search for similar items in EconPapers)
JEL-codes: D91 H55 J26 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:44:y:2016:p:165-182

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