Should pensions be progressive?

The present paper quantitatively characterizes the consequences of rising pension progressivity in an overlapping generations model with idiosyncratic income, disability and longevity risk as well as endogenous labor supply at the intensive and extensive margin. Focusing on the German pension system which is purely earnings related, we increase the degree of progressivity and compute the optimal mix between flat and earnings-related pensions.

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Year of publication:	2013
Authors:	Fehr, Hans ; Kallweit, Manuel ; Kindermann, Fabian
Published in:	European Economic Review. - Elsevier, ISSN 0014-2921. - Vol. 63.2013, C, p. 94-116
Publisher:	Elsevier
Subject:	Stochastic OLG model \| Tax-benefit linkage \| Endogenous retirement \| Intra-generational risk sharing \| Old-age poverty

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Type of publication:	Article
Classification:	C68 - Computable General Equilibrium Models ; H55 - Social Security and Public Pensions ; J11 - Demographic Trends and Forecasts ; J26 - Retirement; Retirement Policies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010702961