The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal For a Partial Transition to a Funded System

Hans-Werner Sinn

No 1734, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: It is shown that the net fiscal externality created by an additional member of a pay-as-you-go-pension system that is endowed with individual accounts equals the gross contributions of this member. In Germany, this equals about 175,000 Deutsche marks. The paper uses this information to design a hybrid funded system that avoids this externality and improves the public pension system under equity and efficiency considerations.

Keywords: Children; Immigration; Pay-As-You-Go; Pension Systems (search for similar items in EconPapers)
JEL-codes: H55 J6 (search for similar items in EconPapers)
Date: 1997-11
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Citations: View citations in EconPapers (42)

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Related works:
Working Paper: The Value of Children and Immigrants in a Pay-as-you-go Pension System: A Proposal for a Partial Transition to a Funded System (1997)
Working Paper: The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal for a Partial Transition to a Funded System (1997)
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