Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26230
Authors: 
Beetsma, Roel
Romp, Ward E.
Vos, Siert J.
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2185
Abstract: 
In the context of a two-tier pension system, with a pay-as-you-go first tier and a fully funded second tier, we demonstrate that a system with a defined wage-indexed second tier performs strictly better than one with a defined contribution or defined real benefit second tier. The former completely separates systematic redistribution (confined to the first tier) from intergenerational risk sharing (the role of the second tier). This way labor supply is undistorted.
Subjects: 
funded pensions
risk sharing
overlapping generations
endogenous labour supply
JEL: 
E21
Document Type: 
Working Paper

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