IDEAS home Printed from https://ideas.repec.org/p/uds/wpaper/20160001.html
   My bibliography  Save this paper

Labor market effects of Pension Reform : an overlapping generations general equilibrium model applied to Tunisia

Author

Listed:
  • Mouna Ben Othman
  • Mohamed Ali Marouani

Abstract

Capture the interactions among pension reform, labor market and inter-generational distribution issues We use an overlapping generation general equilibrium model. The impact on the labor market is addressed on the aggregate level but also y distinguishing different age categories. Results: Increasing the contribution rate is the worst solution in terms of welfare and unemployment, particularly of the youth.Postponing the retirement age is the best option and it does not entail an increase of youth unemployment contrary to the traditional wisdom. The middle-aged are those who benefit the most from the reforms in terms of welfare.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mouna Ben Othman & Mohamed Ali Marouani, 2016. "Labor market effects of Pension Reform : an overlapping generations general equilibrium model applied to Tunisia," Working Papers 20160001, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    • Handle: RePEc:uds:wpaper:20160001
    as

    Download full text from publisher

    File URL: https://umr-developpement-societes.univ-paris1.fr/fileadmin/UMRDS/Working_Papers/WP_-_Labor_market_effects_of_pension_reform.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jonathan Gruber & David A. Wise, 2010. "Social Security Programs and Retirement around the World: The Relationship to Youth Employment," NBER Books, National Bureau of Economic Research, Inc, number grub08-1.
    2. Tahar Abdessalem & Houyem Chekki Cherni, 2011. "Macroeconomic Effects of Pension Reforms in the Context of Ageing Populations: Overlapping Generations Model Simulations for Tunisia," Working Papers 603, Economic Research Forum, revised 07 Jan 2011.
    3. Adriana Kugler & Maurice Kugler, 2003. "The labor market effects of payroll taxes in a middle-income country: Evidence from Colombia," Economics Working Papers 721, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Feldstein, Martin, 1996. "Social Security and Saving: New Time Series Evidence," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(2), pages 151-164, June.
    5. Theresa J. Devine, 1997. "Demographics, Social Security reform, and labor supply," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue jun, pages 77-95.
    6. Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324, Elsevier.
    7. Dotsey, Michael & Li, Wenli & Yang, Fang, 2015. "Home production and Social Security reform," European Economic Review, Elsevier, vol. 73(C), pages 131-150.
    8. Mehdi Ben Braham & Mohamed Ali Marouani, 2016. "Determinants of Contribution Density of the Tunisian Pension System: a Cross Sectional Analysis," Working Papers 1005, Economic Research Forum, revised May 2016.
    9. Hamermesh, Daniel S, 1984. "Consumption during Retirement: The Missing Link in the Life Cycle," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 1-7, February.
    10. Laurence J. Kotlikoff, 1998. "Simulating the Privatization of Social Security in General Equilibrium," NBER Chapters, in: Privatizing Social Security, pages 265-311, National Bureau of Economic Research, Inc.
    11. Vittas, Dimitri, 1993. "Options for pension reform in Tunisia," Policy Research Working Paper Series 1154, The World Bank.
    12. Rasmussen, Tobias N. & Rutherford, Thomas F., 2004. "Modeling overlapping generations in a complementarity format," Journal of Economic Dynamics and Control, Elsevier, vol. 28(7), pages 1383-1409, April.
    13. Breyer, Friedrich & Straub, Martin, 1993. "Welfare effects of unfunded pension systems when labor supply is endogenous," Journal of Public Economics, Elsevier, vol. 50(1), pages 77-91, January.
    14. Louis Kaplow, 2015. "Myopia and the Effects of Social Security and Capital Taxation on Labor Supply," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(1), pages 7-32, March.
    15. Feldstein, Martin, 2002. "The future of social security pensions in Europe," Journal of Financial Transformation, Capco Institute, vol. 5, pages 8-12.
    16. Edwards, Sebastian & Edwards, Alejandra Cox, 2002. "Social Security Privatization and Labor Markets: The Case of Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 465-489, April.
    17. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    18. Mark Huggett & Gustavo Ventura, 1999. "On the Distributional Effects of Social Security Reform," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 498-531, July.
    19. Kotlikoff, Laurence J & Spivak, Avia & Summers, Lawrence H, 1982. "The Adequacy of Savings," American Economic Review, American Economic Association, vol. 72(5), pages 1056-1069, December.
    20. Anda David & Mohamed Ali Marouani, 2015. "Migration and Employment Interactions in a Crisis Context: the case of Tunisia," Working Papers DT/2015/05, DIAL (Développement, Institutions et Mondialisation).
    21. Martin Feldstein & Horst Siebert, 2002. "Social Security Pension Reform in Europe," NBER Books, National Bureau of Economic Research, Inc, number feld02-2.
    22. Sebastian Edwards & Alejandra Cox Edwards, 2002. "Social Security Privatization Reform and Labor Markets: The Case of Chile," NBER Working Papers 8924, National Bureau of Economic Research, Inc.
    23. Kugler, Adriana & Kugler, Maurice, 2003. "The labor market effects of payroll taxes in a middle-income country: evidence from Colombia," Discussion Paper Series In Economics And Econometrics 0306, Economics Division, School of Social Sciences, University of Southampton.
    24. Lau, Morten I. & Pahlke, Andreas & Rutherford, Thomas F., 2002. "Approximating infinite-horizon models in a complementarity format: A primer in dynamic general equilibrium analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 26(4), pages 577-609, April.
    25. repec:dau:papers:123456789/14850 is not listed on IDEAS
    26. Diamond, P. A., 1977. "A framework for social security analysis," Journal of Public Economics, Elsevier, vol. 8(3), pages 275-298, December.
    27. Anda M. David & Mohamed Ali Marouani, 2015. "Migration and employment interactions in a crisis context," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(3), pages 597-624, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Walid Merouani & Claire El Moudden & Nacer Eddine Hammouda, 2021. "Social Security Enrollment as an Indicator of State Fragility and Legitimacy: A Field Experiment in Maghreb Countries," Social Sciences, MDPI, vol. 10(7), pages 1-25, July.
    2. Walid Merouani & Claire El Moudden & Nacer-Eddine Hammouda, 2018. "Social Security Entitlement in Maghreb Countries: Who is Excluded? Who is not Interested?," Working Papers 1264, Economic Research Forum, revised 03 Dec 2018.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaymak, Barış & Poschke, Markus, 2016. "The evolution of wealth inequality over half a century: The role of taxes, transfers and technology," Journal of Monetary Economics, Elsevier, vol. 77(C), pages 1-25.
    2. Gahvari, Firouz & Beach, Randy, 2016. "On the optimal linkage of social security benefits to payroll taxes," Research in Economics, Elsevier, vol. 70(1), pages 110-121.
    3. Assar Lindbeck & Mats Persson, 2003. "The Gains from Pension Reform," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 74-112, March.
    4. Ayşe İmrohoroğlu & Selahattin İmrohoroğlu & Douglas H. Joines, 2003. "Time-Inconsistent Preferences and Social Security," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 745-784.
    5. Staveley-O’Carroll, James & Staveley-O’Carroll, Olena M., 2017. "Impact of pension system structure on international financial capital allocation," European Economic Review, Elsevier, vol. 95(C), pages 1-22.
    6. Dennis Fredriksen & Nils Martin Stølen, 2015. "Life time pension benefits relative to life time contributions," Discussion Papers 825, Statistics Norway, Research Department.
    7. Lehmann-Hasemeyer, Sibylle & Streb, Jochen, 2017. "Does Social Security crowd out Private Savings? The Case of Bismarck’s System of Social Insurance," IBF Paper Series 06-17, IBF – Institut für Bank- und Finanzgeschichte / Institute for Banking and Financial History, Frankfurt am Main.
    8. Vinish SHRESTHA, 2016. "How Efficient are the Current U.S. Beer Taxes?," Journal of Economics and Political Economy, KSP Journals, vol. 3(3), pages 446-470, September.
    9. Godínez-Olivares, Humberto & Boado-Penas, María del Carmen & Haberman, Steven, 2016. "Optimal strategies for pay-as-you-go pension finance: A sustainability framework," Insurance: Mathematics and Economics, Elsevier, vol. 69(C), pages 117-126.
    10. Iñigo Iturbe-Ormaetxe, 2015. "Salience of social security contributions and employment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(5), pages 741-759, October.
    11. Christian Keuschnigg & Mirela Keuschnigg & Christian Jaag, 2011. "Aging and the Financing of Social Security in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(II), pages 181-231, June.
    12. Garon, Jean-Denis, 2016. "The commitment value of funding pensions," Economics Letters, Elsevier, vol. 145(C), pages 11-14.
    13. , & Gonzalez-Eiras, Martin, 2012. "Economic and Politico-Economic Equivalence," CEPR Discussion Papers 9203, C.E.P.R. Discussion Papers.
    14. Valdes-Prieto, Salvador, 1994. "Distributive concerns when replacing a pay-as-you-go system with a fully funded system," Policy Research Working Paper Series 1366, The World Bank.
    15. Erin Cottle Hunt & Frank N. Caliendo, 2022. "Social security and risk sharing: A survey of four decades of economic analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1591-1609, December.
    16. Hurst, Erik & Willen, Paul, 2007. "Social security and unsecured debt," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1273-1297, August.
    17. Cerda, Rodrigo A., 2008. "The Chilean pension reform: A model to follow?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 541-558.
    18. Sebastian Rausch & Thomas Rutherford, 2010. "Computation of Equilibria in OLG Models with Many Heterogeneous Households," Computational Economics, Springer;Society for Computational Economics, vol. 36(2), pages 171-189, August.
    19. B. Douglas Bernheim & John Karl Scholz, 1993. "Private Saving and Public Policy," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 73-110, National Bureau of Economic Research, Inc.
    20. Kerstin Roeder, 2009. "Optimal taxes and pensions in a society with myopic agents," Working Papers 2009/28, Institut d'Economia de Barcelona (IEB).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uds:wpaper:20160001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cyrine Hannafi (email available below). General contact details of provider: https://edirc.repec.org/data/udsp1fr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.