Pension reform and unemployment outcomes

Mouna Ben Othman and Mohamed Marouani

Middle East Development Journal, 2022, vol. 14, issue 2, 264-281

Abstract: This article discusses the interactions among pension reform, labor market and inter-generational distribution issues through an overlapping general equilibrium approach with imperfect labor markets. Workers with different ages are imperfectly substitutable and wages do not clear labor markets. Increasing contribution rates has a strong negative effect on welfare and unemployment, particularly, for the youth. Contrary to the popular wisdom, postponing the retirement age does not entail an increase in youth unemployment. The change in incentives induces a substitution of old-age workers by young workers who constitute the cheapest labor category. However, this scenario substantially increases the implicit tax for older workers as well as for the youngest. Finally, the middle-aged are those that benefit the most from welfare increasing reforms.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/17938120.2022.2086367 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:rmdjxx:v:14:y:2022:i:2:p:264-281

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rmdj20

DOI: 10.1080/17938120.2022.2086367

Access Statistics for this article

Middle East Development Journal is currently edited by Raimundo Soto

More articles in Middle East Development Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().