The Impact of Reducing the Pension Generosity on Inequality and Schooling

Sanchez-Romero Miguel & Fürnkranz-Prskawetz A (2020). The Impact of Reducing the Pension Generosity on Inequality and Schooling. De Economist DOI:10.1007/s10645-020-09359-w.

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Abstract

We investigate the impact of a reduction in the pension replacement rate on the schooling choice and on inequality in an overlapping generations model in which individuals differ by their life expectancy and in their cost of attending schooling. Within our framework we illustrate that many pension systems are ex ante regressive due to the difference in life expectancy across skill groups. We then derive the level of progressivity that needs to be implemented to restore an equal treatment of the pension system across skill groups.

Item Type: Article
Research Programs: World Population (POP)
Depositing User: Luke Kirwan
Date Deposited: 30 Mar 2020 12:12
Last Modified: 30 Mar 2020 12:12
URI: http://pure.iiasa.ac.at/16393

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