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Title:Macroeconomic effects of social security privatization in a small unionized economy PDF Logo
Authors:Adam, Antonis
Issue Date:2004
Series/Report no.:CESifo working papers 1371
Abstract:This paper analyses the effects of a pension system privatization in a unionized economy. Using an overlapping-generations framework we show that in an environment characterized by unemployment, a reform towards a private pension system in the steady state may result in lower levels of employment and capital stock. In this case even if the privatization increases the welfare of all future generations, the reduction in the welfare of the elderly due to reduced pension benefits may be greater and a Pareto improving transition to a private system may not be feasible. On the other hand if the reform leads to higher employment then a Paretoimproving pension privatization scheme can be constructed.
Subjects:public pensions
social security privatization
labour union
unemployment
JEL:J51
J32
H55
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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