Institute of Statistics and Mathematical Methods
in Economics, Vienna University of Technology
Wiedner Hauptstr. 8-10/E105-3
1040 Vienna Austria
and Wittgenstein Centre of Demography
and Global Human Capital (IIASA, VID/ÖAW, WU)
Institutional Affiliation: Wittgenstein Centre of Demography and Global Human Capital and Institu
Information about this author at RePEc
NBER Working Papers and Publications
|June 2019||Redistributive Effects of Different Pension Systems When Longevity Varies by Socioeconomic Status|
with , : w25944
We propose a general analytical framework to model the redistributive features of alternative pension systems when individuals face ex ante differences in mortality. Differences in life expectancy between high and low socioeconomic groups are often large and have widened recently in many countries. Such longevity gaps affect the actuarial fairness and progressivity of public pension systems. However, behavioral responses to longevity and policy complicate analysis of possible reforms. Here we consider how various pension systems would perform in a general equilibrium OLG setting with heterogeneous longevity and ability. We evaluate redistributive effects of three Notional Defined Contribution plans and three Defined Benefit plans, calibrated on the US case. Compared to a benchmark non-redi...
Published: Miguel Sanchez-Romero & Ronald D. Lee & Alexia Prskawetz, 2020. "Redistributive effects of different pension systems when longevity varies by socioeconomic status," The Journal of the Economics of Ageing, .