CREMER, Helmuth; LOZACHMEUR, Jean-Marie; PESTIEAU, Pierre - Center for Operations Research and Econometrics (CORE), … - 2006
In many countries pension systems involve some form of earnings test; i.e., an invidual's benefits are reduced if he has labor income. This paper examines whether or not such earning tests emerge when pension system and income tax are optimally designed. We use a simple model with individuals...