Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308865 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Population Economics [ISSN:] 1432-1475 [Volume:] 36 [Issue:] 3 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2023 [Pages:] 1799-1827
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
The ongoing demographic change in most developed countries consists of two coinciding independent developments that differ in structure and persistence: A slow, monotonic and (presumably) permanent longevity effect caused by an increasing life expectancy; and a more rapidly changing, non-monotonic and less permanent cohort effect caused by fluctuations in the size of cohorts. This paper shows the longevity effect has a positive impact on the rates of return households generate within a pay-as-you-go (PAYG) pension system. The cohort effect, by contrast, results in winners and losers in PAYG systems. The paper additionally shows that the type of PAYG pension system alters the results significantly. Taking the remarkable demographic change in Germany as an example, a large-scale overlapping generation model quantifies rates of return within the PAYG pension system for every cohort. The results show that the two effects combined cause return differentials of almost 1.3 percentage points between generations.
Subjects: 
Demographic change
Pension system
OLG models
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.