Pension reform, employment by age, and long-run growth

Tim Buyse, Freddy Heylen and Renaat van de Kerckhove

Journal of Population Economics, 2013, vol. 26, issue 2, 769-809

Abstract: We study the effects of pension reform on hours worked by three active generations, education of the young, the retirement decision of older workers, and aggregate growth in a four-period OLG model. The model explains important facts well for many OECD countries. Our simulation results prefer an intelligent pay-as-you-go system above a fully funded private system. Positive effects on employment and growth are the strongest when the pay-as-you-go system includes a tight link between individual labor income and the pension, and when it attaches a high weight to labor income earned as an older worker to compute the pension assessment base. Copyright Springer-Verlag 2013

Keywords: Retirement; Pension reform; Overlapping generations; E62; H55; J22 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (22)

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Working Paper: Pension reform, employment by age and long-run growth (2011)
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DOI: 10.1007/s00148-012-0416-x

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