Aging, Labor Markets and Pension Reform in Austria

Christian Keuschnigg and Mirela Keuschnigg ()

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: This paper investigates the dynamic consequences of demographic change and various pension reform scenarios for Austria. The analysis is based on a computable overlapping generations model with life-cycle labor supply, savings, and search unemployment. The public sector is decomposed into general government and an unfunded pension system with a tax benefit linkage. Our quantitative analysis considers several pension reform scenarios on top of the demographic transition in an aging society. We find that lowering the pension replacement rate and increasing the retirement age can have strong labor market effects. They strengthen labor supply both in terms of job search intensity, leading to lower unemployment rates, and hours worked.

Keywords: Pension reform; demographic change; unemployment (search for similar items in EconPapers)
JEL-codes: C68 D58 E62 H55 J64 (search for similar items in EconPapers)
Date: 2004-04-06
New Economics Papers: this item is included in nep-dge and nep-lab
Note: Type of Document - pdf. University of St.Gallen Economics Working Paper No 2004-03, January 2004
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Citations: View citations in EconPapers (26)

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Related works:
Journal Article: Aging, Labor Markets, and Pension Reform in Austria (2004)
Working Paper: Aging, Labor Markets and Pension Reform in Austria (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpge:0404002

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