On the choice of public pensions when income and life expectancy are correlated
نویسندگان
چکیده
The paper presents a model where public pensions are determined by majority voting. Voters differ by age and income. Moreover, life expectancy increases with income. Depending on the strength of the link between contributions and benefits, and the relationship between income and life expectancy, individually optimal tax rates may increase or decrease with income. If they decrease, high tax rates are supported by pensioners and poor workers. If they increase with income, the coalition for high tax rates consists of pensioners and rich workers. ‘Ends against the middle’ equilibria are also possible. JEL classification: H55, D72
منابع مشابه
Longevity and Redistribution in the German Pension System
There are theoretical foundations which allow hypothesizing on a positive association of life expectancy or retirement age with income. If both cannot be falsified, the relationship of income and the internal rate of return of a public pension system is not straight forward. By application of a partially linear model to micro data from the German public pension system, it is found that neither ...
متن کاملLength of life and the pensions of five million retired German men.
BACKGROUND Socioeconomic differences in old-age mortality have not been studied in Germany. This study fills in the gap, evaluating mortality and life expectancy differentials among retired German men aged 65+ in 2003. METHODS Mortality rates are calculated from the administrative database on all public pensions and deaths of pensioners in 2003. Relative mortality rates and life expectancies ...
متن کاملFairness of Public Pensions and Old-Age Poverty
In several OECD countries, public pay-as-you-go pension systems have undergone major reforms in which future retirement benefit promises have been scaled down. A consequence of these reforms is that, especially in countries with a tight tax-benefit linkage, the retirement benefit claims of low-income workers might not even exceed the minimum income guarantee that the government provides the age...
متن کاملFairness of Public Pensions and Old-Age Poverty
In several OECD countries, public pay-as-you-go financed pension systems have undergone major reforms in which future retirement benefit promises have been scaled down. A consequence of these reforms is that especially in countries with a tight tax-benefit linkage, the retirement benefit claims of low-income workers might not even exceed the minimum income guarantee which the government provide...
متن کاملThe impact of environmental pollutants emission (carbon dioxide) on life expectancy of men and women in Iran
Background and Objective: Among greenhouse gases, CO2 has a crucial role; thus, its impact on health indicators such as life expectancy is of great importance. Hence, one of the most important challenges in the health sector has been the impact of the environmental pollutants emission, namely CO2, on life expectancy of men and women. Materials and Methods: This is a descriptive-analytical and ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2003