Aging, Labor Markets and Pension Reform in Austria

Item Type Journal paper

This paper investigates the dynamic consequences of demographic change and various pension reform scenarios for Austria. The analysis is based on a computable overlapping-generations model with life-cycle labor supply, savings, and search unemployment. The public sector is decomposed into general government and an unfunded pension system with a tax - benefit linkage. Our quantitative analysis considers several pension reform scenarios on top of the demographic transition in an aging society. We find that lowering the pension replacement rate and increasing the retirement age can have strong labor-market effects. They strengthen the labor supply both with respect to job search intensity, leading to lower unemployment rates, and with respect to hours worked.

Authors Keuschnigg, Christian & Keuschnigg, Mirela
Journal or Publication Title FinanzArchiv
Language English
Keywords Pension Reform, CGE, Aging, Labor Markets.
Subjects other research area
HSG Classification not classified
Refereed No
Date 1 September 2004
Publisher Mohr Siebeck
Place of Publication Tübingen
Volume 60
Number 3
Page Range 359-392
Number of Pages 34
ISSN 0015-2218
ISSN-Digital 1614-0974
Publisher DOI 10.1628/0015221042396168
Depositing User Wolfgang Lechthaler
Date Deposited 15 Dec 2004 12:44
Last Modified 24 Nov 2016 15:58



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Keuschnigg, Christian & Keuschnigg, Mirela (2004) Aging, Labor Markets and Pension Reform in Austria. FinanzArchiv, 60 (3). 359-392. ISSN 0015-2218

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