THEORETICAL ASPECTS OF INTERNATIONAL LABOR MIGRATION AGAINST THE BACKGROUND OF EXTERNAL SHOCKS

Author:

Ostrovskyi I.1ORCID,Mozhaikina N.1ORCID

Affiliation:

1. O.M. Beketov National University of Urban Economy in Kharkiv

Abstract

The article examines the theoretical problems of reforming pension systems, taking into account the experience of developed countries. Attention is focused on the problems of population aging and increasing demographic burden on the working population. The variety of approaches to the formation of the pension insurance system is analyzed. The relevance of the inclusion of indicators of the theoretical percentage of replacement of labor income by pension and the aggregate percentage of replacement for the modeling of the three-level pension system is emphasized. The problem of pension provision for citizens is particularly relevant for Ukraine, which has been experiencing a steady depopulation of the population for the past 30 years. Under such circumstances, it is very relevant to study theoretical justifications and statistical measurements, generalize the experience of developed countries, take into account the variety of approaches and develop national priorities and directions for reforming the pension system of Ukraine. Demographic changes present pension systems with complex issues of ensuring the fairness and adequacy of pension payments, the sustainability of the systems themselves, and achieving intergenerational equality. The degree of implementation of the function of smoothing citizens' incomes after the termination of employment by various pension systems is partially characterized by the indicator of the theoretical percentage of replacement of labor income by pension (TRR). The replacement rate shows the estimated amount of the hypothetical pension of an employee with an average salary during the first year after the appointment of a pension compared to the earnings before retirement in the base case (with a 40-year career and retirement at the official retirement age). Another possible indicator of the level of pension provision — the aggregated replacement rate (ARR) — shows the ratio of the median income of persons of the retirement age group to the median income from work of the population of the pre-retirement decade. The trends of increasing the retirement age and the introduction of various savings programs to increase personal interest in pension insurance are characteristic not only of countries with a high, but also with an average and below-average level of economic development. Keywords: population aging, demographic burden, pension systems, theoretical percentage of labor income by pension replacement, aggregated percentage of replacement.

Publisher

O.M.Beketov National University of Urban Economy in Kharkiv

Subject

General Earth and Planetary Sciences,General Environmental Science

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