Table of contents alert
Do you want to receive an email alert about new issue?


Volume 52, Issue 11


Důchodové systémy v Evropě a rozšíření Evropské unie

Schneider, Ondřej

Year: 2002   Volume: 52   Issue: 11   Pages: 658-661

Abstract: This paper analyzes the model effects of a unification of public pension systems financed on a payas- you-go basis. It focuses on a potentially inefficient allocation of labor, which may be caused by permitting households to choose repeatedly between public pension systems. The model examines perfect and imperfect cases of labor mobility. Under perfect labor mobility, the only level of social-security payments that satisfies the efficiency conditions is zero. The model shows that even in the case of imperfect labor mobility, the harmonization of two PAYG systems is not a sufficient condition for the effective allocation of labor if fertility rates are observable before households decide upon their relocation. Therefore, labor mobility limits the government’s ability to maintain an independent social- security system with an efficient allocation of labor.

JEL classification: D1, H0, J3

Keywords: European integration; pension systems; labor mobility


RePEc: n/a

pdf Attachment [PDF] print Print   Recommend to others Recommend to others