Controlling the effects of demographic risks: the role of pension indexation schemes
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Published:2005-07
Issue:2
Volume:4
Page:139-153
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ISSN:1474-7472
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Container-title:Journal of Pension Economics and Finance
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language:en
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Short-container-title:Journal of Pension Economics and Finance
Author:
ALHO JUHA M.,HOUGAARD JENSEN SVEND E.,LASSILA JUKKA,VALKONEN TARMO
Abstract
Within a model featuring demographic uncertainty, this paper studies a pension reform where public pension benefits are indexed to the total wage bill rather than to the average wage level. This implies a decline in the variability of contribution rates and an increase in the variability of replacement rates. While thus shifting some of the adjustment burden following demographic shocks to pensioners, the trade-off in risks is found to be fairly moderate.
Publisher
Cambridge University Press (CUP)
Subject
Organizational Behavior and Human Resource Management,Economics and Econometrics,Finance,Organizational Behavior and Human Resource Management,Economics and Econometrics,Finance
Cited by
4 articles.
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