Aging, Taxes and Pensions in Switzerland

Christian Keuschnigg

No 5714, CESifo Working Paper Series from CESifo

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 pensions, taxes and social contributions, 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 effective 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; pensions; taxation; labor market effects; growth (search for similar items in EconPapers)
JEL-codes: D58 D91 H55 J26 J64 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Aging, Taxes and Pensions in Switzerland (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5714

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