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Pensions with early retirement and without commitment

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  • Neugart, Michael

Abstract

In this paper it is shown that more generous early retirement provisions as well as lower employment lead to lower steady state pension rates if governments weigh the welfare of the older persons relatively strongly. A relatively stronger weight on the welfare of the young reverses the results. The driving forces behind those findings are governments that cannot commit to pension policies and consequently take into account future governments' policies when maximizing electoral support from the currently young and old constituencies.
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Suggested Citation

  • Neugart, Michael, 2009. "Pensions with early retirement and without commitment," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 56076, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:56076
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/56076/
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    1. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
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    3. Grossman, Gene M & Helpman, Elhanan, 1998. "Intergenerational Redistribution with Short-Lived Governments," Economic Journal, Royal Economic Society, vol. 108(450), pages 1299-1329, September.
    4. Neugart, Michael & Schömann, K., 2002. "Forecasting Labour Markets in OECD Countries – Measuring and Tackling Mismatches," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57334, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    Cited by:

    1. Neugart, Michael & Kemmerling, Achim, 2015. "The emergence of redistributive pensions in the developing world," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112884, Verein für Socialpolitik / German Economic Association.
    2. Achim Kemmerling & Michael Neugart, 2019. "Redistributive pensions in the developing world," Review of Development Economics, Wiley Blackwell, vol. 23(2), pages 702-726, May.
    3. repec:elg:eechap:15325_18 is not listed on IDEAS

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