Chapter

Pensions and Contemporary Socioeconomic Change

Assar Lindbeck

in Social Security Pension Reform in Europe

Published by University of Chicago Press

Published in print January 2002 | ISBN: 9780226241081
Published online February 2013 | e-ISBN: 9780226241913 | DOI: http://dx.doi.org/10.7208/chicago/9780226241913.003.0003
Pensions and Contemporary Socioeconomic Change

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This chapter discusses pension systems in various types of socioeconomic changes. Section 1.1 begins by classifying six generic pension systems. Section 1.2 considers the consequences, in the context of each system, of socioeconomic changes for the intergenerational distribution of income, risk sharing, and macroeconomic balance. Endogenous behavioral adjustments in response to welfare-state arrangements, in particular via disincentive effects on work and saving, are also introduced. Section 1.3 presents marginal reforms, which include both ad hoc policy measures and various automatic adjustment mechanisms. Section 1.4 discusses two radical reforms, namely, a shift to either a quasi-actuarial system characterized by a strong link between contributions and benefits, or to a fully funded pension system with a capital-market rate of return on the contributions. Section 1.5 considers adjustments of various pension systems to increased heterogeneity of individuals and households, while Section 1.6 draws conclusions. A discussion summary is included at the end of the chapter.

Keywords: pension systems; socioeconomic change; income distribution; risk sharing; macroeconomic balance; pension reforms

Chapter.  12455 words. 

Subjects: Public Economics

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