Intergenerational Risk Sharing, Pensions and Endogenous Labor Supply in General Equilibrium

Roel Beetsma, Ward Romp and Siert J. Vos

No 2185, CESifo Working Paper Series from CESifo

Abstract: In the context of a two-tier pension system, with a pay-as-you-go first tier and a fully funded second tier, we demonstrate that a system with a defined wage-indexed second tier performs strictly better than one with a defined contribution or defined real benefit second tier. The former completely separates systematic redistribution (confined to the first tier) from intergenerational risk sharing (the role of the second tier). This way labor supply is undistorted.

Keywords: funded pensions; risk sharing; overlapping generations; endogenous labour supply (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (5)

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Journal Article: Intergenerational Risk Sharing, Pensions, and Endogenous Labour Supply in General Equilibrium (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2185

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