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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2185

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth
• Subject: funded pensions ; risk sharing ; overlapping generations ; endogenous labour supply ; Generationenbeziehungen ; Risikopräferenz ; Alterssicherung ; Overlapping Generations ; Allgemeines Gleichgewicht

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Beetsma, Roel ; Romp, Ward E. ; Vos, Siert J.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26230
• Last update: 15.03.20252025, 11:43 AM CET