Endogenous demographic change, retirement and social security / Giam Pietro Cipriani (University of Verona and IZA), Tamara Fioroni (University of Verona) ; IZA Institute of Labor Economics
VerfasserCipriani, Giam Pietro ; Fioroni, Tamara
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, March 2019
Elektronische Ressource
Umfang1 Online-Ressource (24 Seiten) : Diagramme
SerieDiscussion paper ; no. 12244
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Endogenous demographic change, retirement and social security [0.39 mb]
Verfügbarkeit In meiner Bibliothek
Zusammenfassung (Englisch)

In this paper, we analyse the effects of demographic change on a PAYG pension system, financed with a defined contribution scheme. In particular we examine the relationship between retirement, fertility and pensions in a three-period overlapping generations model. We focus on both the case of mandatory retirement and the case where the retirement age is freely chosen. In the case of mandatory retirement, increasing longevity has an unambiguously negative impact on fertility and pension payouts and a positive effect on the level of physical capital in the steady state. On the other hand, when agents choose the time of retirement, an increase in life expectancy positively affects physical capital only when the tax rate is sufficiently low and can have a positive impact on pension benefits because agents may find it optimal to retire later and to decrease fertility less. Finally, the effects of the social security tax on capital per worker are negative with mandatory retirement, however they could be positive in the optimal retirement case.