Aging and the Financing of Social Security in Switzerland

Christian Keuschnigg, Mirela Keuschnigg and Christian Jaag

Swiss Journal of Economics and Statistics (SJES), 2011, vol. 147, issue II, 181-231

Abstract: The gains in life expectancy are expected to double the dependency ratio and increase population by 10% in Switzerland until 2050. To quantify the effects on social security and public finances, we use an overlapping generations model with five margins of labor supply: labor market participation, hours worked, job search, retirement, and on-the-job training. A passive fiscal strategy would be very costly. A comprehensive reform, including an increase in the retirement age to 68 years, may limit the tax increases to 4 percentage points of value added tax and reduce the decline of per capita income to less than 6%.

Keywords: Aging; social security; retirement; human capital; unemployment (search for similar items in EconPapers)
JEL-codes: D58 D91 H55 J26 J64 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: Aging and the Financing of Social Security in Switzerland (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2011-ii-3

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