The value of children and immigrants in a pay-as-you-go pension system : a proposal for a partial transition to a funded system

Author / Creator

Sinn, Hans-Werner

Available as

Online

Summary

Abstract: It is shown that the net fiscal externality created by an additional member of a pay-as-you-go pension system that is endowed with individual accounts equals the gross contributions" of t...

Abstract: It is shown that the net fiscal externality created by an additional member of a pay-as-you-go pension system that is endowed with individual accounts equals the gross contributions" of this member. In Germany, this is an amount of about DM 175,000. The paper uses this" information to design a hybrid funded system that avoids this externality and improves the" public pension system under equity and efficiency considerations

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