Life-Cycle Unemployment, Retirement, and Parametric Pension Reform

Fisher, Walter H. and Keuschnigg, Christian (May 2011) Life-Cycle Unemployment, Retirement, and Parametric Pension Reform. Former Series > Working Paper Series > IHS Economics Series 267


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Abstract: This paper investigates the consequences of pension reform for life-cycle unemployment and retirement. We find that (i) improving actuarial fairness in pension assessment not only boosts old age participation but also reduces unemployment among prime age workers and raises welfare; (ii) strengthening the tax benefit link boosts life-cycle labor supply on all margins and welfare; (iii) excluding unemployment benefits from the pension assessment base reduces unemployment, encourages later retirement and boosts efficiency; and (iv) extending the calculation period favors employment of young workers, might possibly lead to more unemployment among older ones, encourages postponed retirement and most likely yields positive welfare gains.;

Item Type: IHS Series
Keywords: 'Pensions' 'Tax benefit link' 'Retirement' 'Unemployment'
Classification Codes (e.g. JEL): H55, J26
Date Deposited: 26 Sep 2014 10:39
Last Modified: 27 Sep 2019 06:16
ISBN: 1605-7996

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