Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108288
Authors: 
Simonovits, András
Year of Publication: 
2013
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2013/12
Abstract: 
Nonfinancial defined contribution (NDC) pension systems have recently become popular because they provide the strong incentives of the private funded systems without requiring a difficult transition period. Using the framework of mechanism design, these systems have theoretically been criticized because they neglect the regressive intracohort redistribution: longer lived workers retire later and are rewarded as if their life expectancies were average. Now we document this by Hungarian data, and giving up the framework of mechanism design, we corroborate our earlier qualitative findings withthe more realistic benefit adjustment function and wage heterogeneity.
Subjects: 
nonfinancial defined contributions
variable retirement
adverse selection
actuarial fairness
JEL: 
C61
C63
D82
D91
H55
ISBN: 
978-615-5243-65-3
Document Type: 
Working Paper

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