Economics at your fingertips  

Pension Reforms and Taxation in Estonia

Ringa Raudla () and Karsten Staehr ()
Additional contact information
Ringa Raudla: Department of Public Administration, University of Tartu

Baltic Journal of Economics, 2003, vol. 4, issue 1, 64-92

Abstract: Estonia completed its pension system reforms in 2002. The new 3-pillar system features a first pillar of universal state pension, a second pillar of funded supplementary pension and a third pillar of independent pension savings. The paper reviews the new pension system and the early experience. It also brings up a number of unsettled issues, in part stemming from the interplay between the pension and taxation systems. Albeit the new pension scheme has been successfully implemented, it is excessively complex and non-transparent. Certain groups could experience inadequate pension coverage. The public finances are in the short term adversely affected by lower payroll and income tax revenue. Any longer-term effects on economic performance are very uncertain and likely to stem primarily from changes in the labour supply.

Keywords: Pension reform; payroll taxes; savings; incentive effects (search for similar items in EconPapers)
JEL-codes: G23 H55 O16 (search for similar items in EconPapers)
Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Baltic Journal of Economics from Baltic International Centre for Economic Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by Lelde Jakobsone ().

Page updated 2020-01-29
Handle: RePEc:bic:journl:v:4:y:2003:i:1:p:64-92