Intergenerational Risk Sharing and Endogenous Labour Supply within Funded Pension Schemes
Bibliographic Data
| ID | 9724030 |
|---|---|
| Authors | Jan Bonenkamp (CPB Netherlands Bureau for Economic Policy Analysis and Netspar), Ed Westerhout (0000-0003-3123-702X, CPB Netherlands Bureau for Economic Policy Analysis Netspar and University of Amsterdam) |
| Year | 2014 |
| Volume | 81 |
| Issue | 323 |
| Pages | 566-592 |
| Publication date | 2014-07-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12092 |
| OpenAlex | W2041038844 |
| Language | EN |
| Citations received | 1 |
| References cited | 30 |
Funded defined‐benefit pensions add to welfare on account of providing intergenerational risk sharing, but lower it on account of inducing labour supply distortions. We show that a properly designed funded defined‐benefit pension scheme involves a welfare improvement even if contributions are distortionary and even if individuals face potentially correlated wage and equity risks. Numerical calculations indicate that diversification gains from risk sharing are large compared to the losses related to labour supply distortions. This result withstands a number of extensions, like the introduction of a short‐sale constraint for individuals or the inclusion of a labour income tax
Business · Constraint (computer-aided design) · Diversification (marketing strategy) · Economics · Equity (law) · Labour economics · Labour supply · Market economy · Pension · Wage · Welfare · Finance · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Retirement, Disability, and Employment
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Intergenerational Risk Sharing in the Spirit of Arrow, Debreu, and Rawls, with Applications to Social Security Design
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Pensions and Intergenerational Risk‐sharing in General Equilibrium
| Citations per year | 0.5 |
|---|---|
| Citation span | 2024 - 2024 (1) |
| Highly cited | No |