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Public Pensions (public + pension)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	81%
Humanities and Social Sciences	18%

Terms modified by Public Pensions

public pension programme

public pension scheme

public pension system

Selected Abstracts

GROWTH AND WELFARE EFFECTS OF AN ENVIRONMENTAL TAX-BASED PUBLIC PENSION REFORM,

THE JAPANESE ECONOMIC REVIEW, Issue 3 2007
TETSUO ONO
This paper presents an overlapping generations model in which: (i) firms create emissions as by-products of production; and (ii) tax revenue from the working young is transferred to the retired elderly as pay-as-you-go pension benefits. The paper focuses on a replacement ratio, which measures the proportion of after tax work earnings replaced by the public pension, and considers a replacement ratio neutral reform in which the newly introduced environmental tax is devoted to cutting the social security tax, keeping the replacement ratio unchanged. It is shown that the reform may improve growth, environmental quality and the nonenvironmental utility of every generation. [source]

Public Pension Reform in the United Kingdom: What Effect on the Financial Well-Being of Current and Future Pensioners?,

FISCAL STUDIES, Issue 1 2005
Richard Disney
Abstract Unlike many tax and benefit changes, reforms to public pension programmes take many years to have their full effect. This paper examines the effect of reforms to the public pension programme in the United Kingdom on the state retirement incomes of current generations of pensioners and on the prospective state incomes of future generations of pensioners. We show that, for an individual with lifetime earnings close to male average earnings, the UK pension system is at its most generous to those reaching the state pension age around the year 2000, but that the introduction of the state second pension and the pension credit postpones this peak for individuals on lower incomes and for those with substantial periods out of paid employment spent with caring responsibilities. We also consider how the ,mix' of benefits, particularly between the contributory and income-tested sectors, could change over time, and the impact that this would have on incentives to save for retirement. [source]

Public Pensions and Immigration: A Public Policy Approach.

ECONOMICA, Issue 295 2007
By TIM KRIEGER
No abstract is available for this article. [source]

Investing Public Pensions in the Stock Market: Implications for Risk Sharing, Capital Formation and Public Policy in the Developed and Developing World

INTERNATIONAL REVIEW OF FINANCE, Issue 3 2001
Deborah Lucas
Concerns that existing public pension systems will be unable to pay benefits to a rapidly ageing population without sharp tax increases, and the prospect of higher average returns on stocks than on government securities, are drawing the attention of policy,makers worldwide to the option of investing public pension assets in stocks. Including stock market investments in public pension plans could improve risk sharing within and between generations, and could perhaps lead to faster market development in some countries. It could also result in excessive risk,taking, higher transactions costs and a false sense of increased financial security. This paper assesses these issues, with an emphasis on the considerations that are of special importance to developing markets. A contrast is drawn between the demographic outlook in East Asia and the major industrialized countries. Some lessons are drawn from the reform experience in Chile and elsewhere in Latin America. [source]

Differential Mortality and the Design of the Italian System of Public Pensions

LABOUR, Issue 2003
Graziella Caselli
After reviewing the secular trends in elderly mortality in Italy, and the evolution of regional differences in survival over the last three decades, we evaluate the impact, on the conversion factors introduced by the Dini reform, of a further decline in elderly mortality over the next few decades. We compute the conversion factors using a close approximation to the unknown formula employed in the Dini reform but allowing for gender- and region-specific survival probabilities. Our results leave no doubt about the importance of frequently updating the conversion factors in the light of the rapid increase in elderly survival. The paper also quantifies to what extent gender- and region-specific conversion factors may differ from their currently legislated values, that only vary by age. Finally, we recognize that the actuarial fairness of the system introduced by the recent reform can only be guaranteed on average and that, in the presence of a heterogeneous population of individuals that differ considerably in their mortality prospects, the current system implies a substantial degree of redistribution from high-mortality groups (typically characterized by low income and low wealth) to low-mortality groups (typically characterized by high income and high wealth). [source]

Intergenerational Transfers, and Public Pensions in a Non Altuistic Setting: a Public Choice Model

LABOUR, Issue 1 2001
Furio Camillo Rosati
The paper presents a model based on non-altruistic individuals, where middle aged and old individuals influence the decisions about public social security system. This is an alternative or a complement to private intergenerational transfers. Fertility is endogenous, as children are seen as an assets in the process of transferring resources to old age by the network of intergenerational intrafamily transfers. Expectations about the Government social security budget balance play a crucial role. We also present some empirical estimates of the fertility and pension ,demand' function for some developed countries. It emerges that both can be treated as endogenous, and the results are coherent with the theory. [source]

Facing the Age Wave and Economic Policy: Fixing Public Pension Systems with Healthcare in the Wings,

FISCAL STUDIES, Issue 1 2005
David A. Wise
Abstract There are two overriding problems faced by ageing societies. One is the financing of public pension (social security in US terms) programmes. The other is paying for healthcare. This paper considers the healthcare issue briefly, emphasising that the issue arises primarily because of advances in medical technology. Better medical technology will improve healthcare in the future, but more advanced technologies also cost more. The focus of the rest of the paper is on the public pension problem. The emphasis is on the early retirement incentives inherent in the provisions of most public pension programmes around the world, the reduction in the labour force participation of older people caused by these incentives, and the large fiscal implication of the inducement of older people to leave the labour force. These results are based on the Gruber,Wise ongoing international social security comparison project. [source]

Does Public Income Induce More Consumption?,

THE ECONOMIC RECORD, Issue 272 2010
ELLIOTT FAN
The Life-Cycle/Permanent Income Hypothesis predicts that income uncertainty reduces an individual's incentive to consume, while holding permanent income level constant. This implies that switching from a relatively unstable form of income to a stable one motivates consumption. This article explores this implication by quantifying and comparing the marginal propensity to consume (MPC) out of private income and income from a public pension scheme. It exploits the introduction of a public pension that provides a monthly fixed amount of payment , a relatively secure source of income. The results suggest that the provision of pension leads to a higher MPC for the beneficiaries' households, and the estimated MPC out of the pension income is significantly larger than the corresponding estimate for private income. Further examination suggests that households facing more non-tradable risks appear to be more prudent on consumption, highlighting the role of income uncertainty in households' consumption decisions. [source]

GROWTH AND WELFARE EFFECTS OF AN ENVIRONMENTAL TAX-BASED PUBLIC PENSION REFORM,

Developmentalism in Korea: A Useful Tool for Explaining the Role of Social Security in the Reduction of Poverty and Inequality

ASIAN SOCIAL WORK AND POLICY REVIEW, Issue 2 2008
Sang Kyun Kim
It is conventional wisdom that universalism is more effective than selectivism in addressing the problems of poverty and inequality. In providing income security for the elderly, retirement pensions calculated on the principle of social insurance represent universalism and social assistance benefits on the basis of means-test selectivism. Korea has both a contributory pension scheme and social assistance program for the elderly. The social assistance began in 1961. The contributory scheme, the National Pension, started belatedly in 1988 and its coverage expanded to the entire population in 1999. We can, therefore, expect that the social security system, especially the universal pension scheme based on social insurance, has some positive impacts on the reduction of poverty and inequality. This paper, however, raises doubt as to the conventional wisdom and thus reviews the developmental process of the Korean social security system for the aged. It was found that the dominant ideological controversy revolved, not around universalism versus selectivism, but around the option between developmentalism and other strategies. Our empirical analysis showed that the public pension had little impact on the reduction of poverty and inequality, particularly in comparison with advanced welfare states. This is not surprising at all, since poverty eradication and redistribution were not major objectives of the Korean social security system. The controversy between universalism and selectivism was relatively unfamiliar in the policy process of the Korean social security system. Even though the redistributive effect is getting larger as the National Pension system becomes mature, the developmentalist model has been proved to be a more useful tool for explaining the limited role of Korean social security. [source]

Would you like to shrink the welfare state?

ECONOMIC POLICY, Issue 32 2001
A survey of European citizens
The fundamental problems facing European welfare states , high unemployment and unsustainable public pensions plans in particular , have been in the political debate for years, so why have we seen so little reform? To find out, we surveyed the opinions of citizens in France, Germany, Italy and Spain on their welfare states and on various reform options. This is what we found. First, most workers underestimate the costs of public pensions, though they are aware of their unsustainability. Second, the status quo is a majoritarian outcome: a majority of citizens opposes cuts to social security and welfare spending, but also opposes further increases. Since population ageing without reform implies an automatic expansion, our results suggest that most citizens would favour reforms that stabilize but do not shrink the current welfare states. Third, many would welcome changes in the allocation of benefits. A large number of workers in Italy and Germany would be willing to opt out of public pensions and replace them with private pensions, though the details of how this scheme is formulated matter for its popularity. And many Italians and Spaniards would welcome an extension of the coverage of unemployment insurance. Fourth, conflicts over the welfare state are mainly shaped by the economic situation of the respondent, while political ideology plays a limited role. Disagreements are found along three dimensions: young versus old, rich versus poor, and ,outsider' versus ,insider' in terms of labour market status. From a practical point of view, this suggests that there is scope to bundle reforms strategically in order to build a large and mixed coalition of supporters. , Tito Boeri, Axel Börsch-Supan and Guido Tabellini [source]

Economic Capabilities, Choices and Outcomes at Older Ages,

FISCAL STUDIES, Issue 3 2006
James Banks
Abstract Intense policy and academic interest in the ,economics of ageing' has come about as a result of the demographic trends that have been experienced over the last 50 years and that are projected for the next 50 years. Key economic policy issues relate to the design of public pensions, welfare systems, healthcare and invalidity benefits, and the regulation of private pensions and other retirement saving. This paper presents an overview of the beginnings of a research agenda targeted towards increasing the empirical evidence on these issues in England and providing extensive data for subsequent research. The paper focuses on summarising some recent data on how individuals' economic circumstances, and in particular the ability and willingness to work, change from age 50 onwards. This will be a key factor in determining the ability of economic institutions to adjust to new socio-demographic equilibria in which individuals are living for longer. Further issues for more extensive empirical research are also identified. [source]

Private Pension Arrangements and Retirement in Britain,

FISCAL STUDIES, Issue 1 2005
James Banks
Abstract This paper looks at the policy debate surrounding private pensions and retirement patterns in the UK. Recent increases in longevity have led not only to increased pressures in public pensions but also to corresponding increases in the importance of private pensions in the UK and changes in the way in which they are structured. We consider the economic implications of these changes, and in particular the increased importance of defined contribution plans. In addition, we discuss the prospects for future trends in retirement ages. [source]

Rethinking Social Security in Latin America

INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 2-3 2005
Indermit Gill
In the past decade, many Latin American governments have radically restructured their old age income security systems, following the lead of Chile, which undertook its major pension reform in 1981. The defining characteristic of the reforms has been a shift in the basis of public pensions from social to individual responsibility: instead of the widely used system that "collectivized" or pooled the risk of being without the capacity to earn while aged, numerous countries in the region have adopted a system that relies on individual savings accounts. The reforms have maintained a role for a modified version of public pooling; this combination of individual and social savings to finance pensions is known as the "multipillar" approach. This article is based on a report prepared for the Office of the Chief Economist of the Latin America and Caribbean Region of the World Bank (Gill, Packard and Yermo, 2004).1 The report recognizes that the system of individual accounts, the essential aspect of the reform, has been a necessary and positive development, and one that is consistent with the economics of insurance and social welfare objectives. Beyond this recognition, however, the results of reform are much more complex. Each country has implemented its own version of the multipillar system. The article therefore draws on country evidence in order to determine: How has the new approach to public pensions in Latin America fared? In particular, have the changes left workers and their families in reform countries better off? The first section provides a brief description of the reforms. The second discusses the main macroeconomic concerns and effects. The third describes the impact on coverage levels, and other social welfare implications. The fourth evaluates the stagnation of coverage levels and presents various possible explanations. The fifth makes specific proposals to improve the multipillar pension system in Latin America. The last section concludes. [source]

A New Social Security Reform Consensus?

INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 1 2000
The ISSA's Stockholm Initiative
At a meeting of the ISSA Bureau in Stockholm in 1996, theInternational Social Security Association under the author's presidency launched what became known as the Stockholm Initiative, under the title "The social security reform debate: In search of a new consensus". The objective was to bring together the often contrasting views of national and international experts involved in the social security reform debate, in a first phase with particular regard to public pensions. A broad consensus emerged among specialists about the need to balance social goals and macroeconomic requirements when designing and implementing reforms. This article reviews the background to the Initiative, outlines its achievements and surveys the issues which need to be faced. [source]

VOTING, INEQUALITY AND REDISTRIBUTION

JOURNAL OF ECONOMIC SURVEYS, Issue 1 2007
Rainald Borck
Abstract This paper surveys models of voting on redistribution. Under reasonable assumptions, the baseline model produces an equilibrium with the extent of redistributive taxation chosen by the median income earner. If the median is poorer than average, redistribution is from rich to poor, and increasing inequality increases redistribution. However, under different assumptions about the economic environment, redistribution may not be simply rich to poor, and inequality need not increase redistribution. Several lines of argument are presented, in particular, political participation, public provision of private goods, public pensions, and tax avoidance or evasion. [source]