Pension Funding in a Unionized Economy (Journal article)

Adam, A./ Moutos, T.

This paper analyzes the effects of pension funding for a small open economy in which wages are subject to bargaining. Using an overlapping-generations framework, we show that a reform away from a Pay-As-You-Go towards a funded pension system will be Pareto improving only if the reform results in a reduction in the steady-state unemployment rate. However, the reduction in the unemployment rate is by no means warranted: although for pension systems which involve a limited amount of intra-generational redistribution this is likely, for systems displaying a high degree of intra-generational redistribution the unemployment rate may well rise thus preventing the realization of welfare gains.
Institution and School/Department of submitter: Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
Keywords: as-you-go,social-security,public pensions,efficiency,growth,models,system,wages
ISSN: 0036-9292
Link: <Go to ISI>://000264788300004
Appears in Collections:Άρθρα σε επιστημονικά περιοδικά ( Ανοικτά)

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