Social Security and Institutions for Intergenerational, Intragenerational and International Risk Sharing
نویسنده
چکیده
Social security system old age insurance systems are devices for the sharing of income risks of elderly people with others. Risks can be shared intergenerationally (with the young of the same country), intragenerationally (with other elderly of the same country) or internationally (with foreigners). Barriers to individuals themselves sharing their risks intergenerationally, intragenerationally or internationally are described. Optimal design of government-sponsored social security systems is considered in light of these barriers. Alternative benefits and contributions formulas for pay-as-you-go social security systems are defined and compared with existing and proposed formulas in terms of their ability to fulfill the government’s role in promoting risk sharing. Benefits for each retired person may be tied to that person’s lifetime income without causing (as with the US benefits formula today) aggregate benefits for all elderly today to be tied to their past aggregate income.
منابع مشابه
Granting Exit Option to the Insureds of the Iran Social Security Organization’s (ISSO) Pension Fund and its Impact on the Fund’s Sustainability
Collective pension funds have many advantages including larger risk pool and the possibility of interpersonal and intergenerational risk sharing, as well as economies of scale and lower administrative costs. For decades, however, this has been achieved through mandatory participation, while this traditional and mandatory form of contribution is no longer commensurate with the future of work. In...
متن کاملDesigning the Optimal Social Security Pension System
We extend a standard overlapping-generations general-equilibrium model with idiosyncratic working ability shocks to design the optimal social security pension system. There are two main features in our approach. First, we keep track of individual social security wealth explicitly so that we can evaluate a wide range of policies, including “private accounts,” seamlessly. Second, we express our s...
متن کاملThe Effect of Intra- and Intergenerational Caregiving on Subjective Well-Being – Evidence of a Population Based Longitudinal Study among Older Adults in Germany
OBJECTIVE To examine whether intra- and intergenerational caregiving affect subjective well-being (SWB) of the caregivers longitudinally. METHODS Data were drawn from the German Ageing Survey (DEAS), which is a population-based longitudinal study of individuals living in Germany aged 40 and over. The waves in 2002, 2008 and 2011 were used (with 10,434 observations). SWB was examined in a broa...
متن کاملThe Effect of Aspirations, Habits, and Social Security on the Distribution of Wealth
In this paper, we analyze how the introduction of habits and aspirations a ects the distribution of wealth when individuals’ labor productivity is subject to idiosyncratic shocks and bequests arise from a joy-of-giving motive. In the presence of either bequests or aspirations, labor income shocks are transmitted intergenerationally and this transmission, together with the contemporaneous income...
متن کامل5hglvwulexwlrq Lq Wkh 6sdqlvk Shqvlrq V\vwhp $q Dssurdfk Wr Lwv Olih Wlph Hiihfwv Sru -rdq *lo Dqg *xloohp /ysh]&dvdvqrydv
This paper computes first the internal rates of return of different population cohorts. Secondly, we study the intragenerational aspects by calculating the returns over life-time contributions for workers of different categories, grouped by earnings, gender and marital status. Under a set of assumptions on contribution rates and wage profiles –in absence of actual data on longitudinal contribut...
متن کامل