Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245361 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9180
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We discuss public pension systems in a multi-period overlapping generations model with gerontologically founded human aging and a special focus on occupation-specific morbidity and mortality. We examine how distinct replacement rates for white-collar and blue-collar workers and early retirement policies could be designed to provide a fair and aggregate welfare-enhancing public pension system. Calibrating the model to Germany, we find that a pension system that equalizes relative pension contributions and the relative present-discounted value of expected benefits across occupational groups calls for a significant increase in replacement rates of blue-collar workers. If the statutory retirement age is sufficiently high or the life expectancy gap across occupations is sufficiently large, fair pensions raise aggregate welfare and should feature early retirement incentives.
Subjects: 
fair pensions
early retirement
occupation
health gradient
life expectancy
replacement rate
JEL: 
H55
I14
I24
Document Type: 
Working Paper
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