Work

Sharing High Growth across Generations: Pensions and Demographic Transition in China

Year: 2015

Type: article

Abstract: We analyze intergenerational redistribution in emerging economies with the aid of an overlapping generations model with endogenous labor supply. Growth is initially high but declines over time. A version of the model calibrated to China is used to analyze the welfare effects of alternative pension reforms. Although a reform of the current system is necessary to achieve financial sustainability, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations. (JEL E13, H55, J11, O11, O15, P24, P36)

Source: American Economic Journal Macroeconomics

DOI: 10.1257/mac.20130322

Authors: Zheng Song, Kjetil Storesletten, Yikai Wang, Fabrizio Zilibotti

Institutions: University of Chicago, University of Oslo, University of Zurich

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2178568832

FWCI: 42.69

Cites: 55

Cited by: 98

Related to: 10