Resource title

Intergenerational risk sharing, pensions and endogenous labor supply in general equilibrium

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Resource description

In the context of a two-tier pension system, with a pay-as-you-go first tier and a fully funded second tier, we demonstrate that a system with a defined wage-indexed second tier performs strictly better than one with a defined contribution or defined real benefit second tier. The former completely separates systematic redistribution (confined to the first tier) from intergenerational risk sharing (the role of the second tier). This way labor supply is undistorted.

Resource author

Roel Beetsma, Ward E. Romp, Siert J. Vos

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26230

Resource license

Adapt according to the presented license agreement and reference the original author.