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

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 contribution of this member. In Germany, this is an amount of about DM 175,000. 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.

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Year of publication:	2001
Authors:	Sinn, Hans-Werner
Published in:	IFO-Studien : Zeitschrift für empirische Wirtschaftsforschung. - München : IFO-Inst. für Wirtschaftsforschung, ISSN 0018-9731, ZDB-ID 2819-8. - Vol. 47.2001, 1, p. 77-94
Subject:	Gesetzliche Rentenversicherung \| Public pension system \| Umlageverfahren \| Pay-as-you-go \| Kapitaldeckungsverfahren \| Fully funded system \| Internationale Migration \| International migration \| Kinder \| Children \| Theorie \| Theory \| Deutschland \| Germany

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Source:	ECONIS - Online Catalogue of the ZBW

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