2023-09-28 14:46:10 +00:00
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abstract: 'We study the effects of pension reform on hours worked, human capital,
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income and welfare in an open economy populated by four overlapping
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generations: three active generations (the young, the middle aged and
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the older) and one generation of retired. Within each generation we
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distinguish individuals with high, medium or low ability to build human
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capital. Our simulation results prefer a pay-as-you-go pension system
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with a particular earnings-related linkage above a fully-funded private
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system. This pay-as-you-go system conditions pension benefits on past
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individual labor income, with a high weight on labor income earned when
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older and a low weight on labor income earned when young. Uncorrected,
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however, such a system implies welfare losses for current low-ability
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generations and rising inequality. Complementing or replacing it by
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basic and/or minimum pension components is negative for aggregate
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employment and welfare. Better is to maintain the tight link between
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individual labor income and the pension also for low-ability
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individuals, but to strongly raise their replacement rate. An additional
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correction improving the welfare of low-ability individuals would be to
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maintain for these individuals equal weights on past labor income.'
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affiliation: 'Buyse, T (Corresponding Author), Univ Ghent, SHERPPA, B-9000 Ghent,
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Belgium.
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Buyse, Tim; Heylen, Freddy; Van de Kerckhove, Renaat, Univ Ghent, SHERPPA, B-9000
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Ghent, Belgium.
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Res Fdn Flanders FWO, Brussels, Belgium.'
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author: Buyse, Tim and Heylen, Freddy and Van de Kerckhove, Renaat
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author-email: 'Tim.Buyse@UGent.Be
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Freddy.Heylen@UGent.Be'
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author_list:
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- family: Buyse
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given: Tim
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- family: Heylen
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given: Freddy
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- family: Van de Kerckhove
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given: Renaat
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da: '2023-09-28'
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doi: 10.1017/S1474747215000281
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eissn: 1475-3022
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files: []
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issn: 1474-7472
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journal: JOURNAL OF PENSION ECONOMICS \& FINANCE
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keywords: 'Employment by age; retirement; pension reform; heterogeneous abilities;
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overlapping generations'
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keywords-plus: SOCIAL-SECURITY; GROWTH; INEQUALITY; POLICY; DECISIONS
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language: English
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month: APR
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number: '2'
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number-of-cited-references: '41'
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orcid-numbers: Buyse, Tim/0000-0002-4769-5888
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pages: 144-172
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papis_id: 5a32f099f6cc0010a56164bfedb0a6a3
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ref: Buyse2017pensionreform
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times-cited: '9'
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title: Pension reform in an OLG model with heterogeneous abilities
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000396831900002
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usage-count-last-180-days: '5'
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usage-count-since-2013: '58'
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volume: '16'
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web-of-science-categories: Business, Finance; Economics
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year: '2017'
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