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Raising the Retirement Age – Why Should Anybody Lose? / Anhebung des Rentenzugangsalters – Muss es Verlierer geben?

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  • Hirte Georg

    (Wirtschaftswissenschaftliche Fakultät Ingolstadt der Katholischen Universität Eichstätt, Auf der Schanz 49, D-85049 Ingolstadt)

Abstract

This paper questions the view that a rise of the retirement age does not reduce the financial problems of a pay-as-you-go public pension system if individuals receive compensations for additional years spent in the labor force. It is shown that rather utility compensation is required than actuarial compensation. As the former is lower it creates an opportunity to raise the retirement age in a Pareto-improving way. By performing a dynamic CGE analysis for Germany, a compensation scheme is derived which is not only Pareto-improving but leads to a large reduction of the contribution rates.

Suggested Citation

  • Hirte Georg, 1999. "Raising the Retirement Age – Why Should Anybody Lose? / Anhebung des Rentenzugangsalters – Muss es Verlierer geben?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 219(3-4), pages 393-408, June.
    • Handle: RePEc:jns:jbstat:v:219:y:1999:i:3-4:p:393-408
    DOI: 10.1515/jbnst-1999-3-411
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    References listed on IDEAS

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    1. Breyer, Friedrich & Kifmann, Mathias & Stolte, Klaus, 1997. "Rentenzugangsalter und Beitragssatz zur Rentenversicherung," Discussion Papers, Series II 332, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    2. Homburg, Stefan, 1990. "The Efficiency of Unfunded Pension Schemes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 146, pages 640-647.
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    Cited by:

    1. Hirte Georg, 2002. "Welfare and Macroeconomic Effects of the German Pension Acts of 1992 and 1999: A Dynamic CGE Study," German Economic Review, De Gruyter, vol. 3(1), pages 81-106, February.
    2. Hirte, Georg, 2001. "Pension Policies for an Aging Society," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 14, number urn:isbn:9783161475399, September.
    3. Silke Uebelmesser, 2004. "Political Feasibility of Pension Reforms," Contributions to Economic Analysis, in: Unfunded Pension Systems: Ageing and Variance, pages 131-158, Emerald Group Publishing Limited.
    4. Hans-Werner Sinn & Silke Übelmesser, 2000. "Wann kippt Deutschland um?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 53(28-29), pages 20-25, November.
    5. Hans-Werner Sinn & Silke Uebelmesser, 2001. "When Will the Germans Get Trapped in their Pension System?," NBER Working Papers 8503, National Bureau of Economic Research, Inc.

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