Sharing High Growth across Generations: Pensions and Demographic Transition in China

Zheng Song (), Kjetil Storesletten, Yikai Wang and Fabrizio Zilibotti

American Economic Journal: Macroeconomics, 2015, vol. 7, issue 2, 1-39

Abstract: We analyze intergenerational redistribution in emerging economies with the aid of an overlapping generations model with endogenous labor supply. Growth is initially high but declines over time. A version of the model calibrated to China is used to analyze the welfare effects of alternative pension reforms. Although a reform of the current system is necessary to achieve financial sustainability, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations. (JEL E13, H55, J11, O11, O15, P24, P36)

JEL-codes: E13 H55 J11 O11 O15 P24 P36 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/mac.20130322
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Citations: View citations in EconPapers (66)

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Related works:
Working Paper: Sharing High Growth Across Generations: Pensions and Demographic Transition in China (2012)
Working Paper: Sharing high growth across generations:pensions and demographic transition in China (2012)
Working Paper: Sharing High Growth Across Generations: Pensions and Demographic Transition in China (2012)
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