A Microanalysis of Pension Reform: To Switch or Not to Switch in the Czech Republic?
Year: 2003 Volume: 53 Issue: 11 -12 Pages: 510-538
Abstract: This paper examines the microeconomic impact of a reform of the Czech pension system in which the program is partially shifted from a public, unfunded basis to a private, funded basis. It considers three different scenarios in which individuals have the choice to switch some of their mandatory contributions into a funded scheme in exchange for a proportionate reduction in their traditional public pension benefits. It attempts to discern, based on gender, age and income, which workers would be better off switching, and offers some recommendations for policy makers. In particular, the impact of mandatory switching on individuals with low earning capacities is examined and discussed.
JEL classification: H55
Keywords: pension reform; social security; Czech Republic
RePEc: n/a
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