Health, Longevity and Pension Reform

• In this paper, we study alternative pension reforms designed to achieve fiscal sustainabilityin the face of demographic change. We are particularly interested in theheterogeneous effects across demographic groups, as improvements in health andlongevity have not been uniform across the population. To this end, we develop a dynamic,structural life cycle model of heterogeneous agents who face health, mortalityand income risk. We consider the following policy reform measures: (1) increasingthe early access age to pensions, (2) raising income taxes, (3) lowering pension benefitsand (4) lowering pension and disability benefits. We find that, of the consideredpolicies, proportionally lowering pension and disability benefits results in the highestaverage welfare and the lowest degree of inequality. It is also successful at boostingemployment, particularly among the less educated.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Life cycle; Retirement; Disability insurance; Health

Economics

Nationalekonomi

Publikations- och innehållstyp

vet (ämneskategori)

rap (ämneskategori)