February 2017

04Feb

Privatizing Pensions: The Transnational Campaign for Social Security Reform

By Mitchell A . Orenstein Most Americans know of President George W. Bush’s 2005 proposals for new pension reforms to privatize Social Security, but few are aware of a conversation that took place on September 11, 1997, between then Texas Governor Bush and José Piñera, a former Chilean Secretary of Labor and Social Security. Piñera is an internationally known advocate of private, individual pension savings accounts who led the effort to replace Chile’s social security system with individual accounts in...

February 4, 2017
Books, System Sustainability, , , ,
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04Feb

Retirement delay unified or differentiated: based on the interaction between pension deficit and labor market

By Zou Tieding & Ye Hang The pension deficit has been rapidly enlarging for more than a decade. If the retirement age is set at a low level, it might trigger a pensions crisis. Since the average life span of the Chinese has extended from 71 to 76 years old in last ten years, the feasibility of rising the retirement age has also been promoted. Methods: This paper aims to construct a mathematical model for choosing a proper policy about...

February 4, 2017
Aging, Articles, Labor Market, System Sustainability, ,
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04Feb

How does pension eligibility affect labor supply in couples?

By Rafael Lalive & Parrotta Pierpaolo Many OECD countries are reforming their pension systems. We investigate how pension eligibility affects labor supply in couples. Inspired by a theoretical framework, we measure how the sharp change in the pension eligibility of both partners affects labor force participation. We find that both partners leave the labor force as they become eligible for a pension. The effect of their own pension eligibility is 12 percentage points for women and 28 percentage points for...

February 4, 2017
Adequacy, Aging, Books, Labor Market
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04Feb

Stress Tests for Defined Benefit Pension Plans: A Primer

By Gregorio Impavido Stress testing is a useful and increasingly popular, yet sometimes misunderstood, method of analyzing the resilience of financial systems to adverse events. This paper aims to help demystify stress tests and illustrate their strengths and weaknesses. Using an Excel-based template with institution-specific data, readers are walked through the basics of liability valuation and stress testing of assets and liabilities of a typical defined benefit plan. Full Content: EconBiz

February 4, 2017
Books, Regulation, Supervision, System Sustainability,
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04Feb

Reforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents

By Joanna Tyrowicz, Krzysztof Makarski and Marcin Bielecki We analyze the effects of increasing the retirement age in two economies with overlapping generations and within cohort ex ante heterogeneity. The first economy has a defined benefit system, and the second economy is in transition from a defined benefit to a defined contribution. We find that if increase in the retirement age is phased in a way that allows agents to adjust, welfare is not reduced and welfare effects have a...

February 4, 2017
Aging, Articles, Pension design,
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