IDEAS home Printed from https://ideas.repec.org/p/zbw/wzblpe/spi2006120.html
   My bibliography  Save this paper

Pensions with early retirement and without commitment

Author

Listed:
  • 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.

Suggested Citation

  • Neugart, Michael, 2006. "Pensions with early retirement and without commitment," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-120, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzblpe:spi2006120
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/43965/1/525343687.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    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.
    2. Neugart, Michael, 2006. "Labor market policy evaluation with an agent-based model," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-113, WZB Berlin Social Science Center.
    3. Breyer, Friedrich, 1994. "The political economy of intergenerational redistribution," European Journal of Political Economy, Elsevier, vol. 10(1), pages 61-84, May.
    4. Grossman, Gene M & Helpman, Elhanan, 1998. "Intergenerational Redistribution with Short-Lived Governments," Economic Journal, Royal Economic Society, vol. 108(450), pages 1299-1329, September.
    5. 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).
    6. Casey B. Mulligan & Xavier Sala-i-Martin, 1999. "Social security in theory and practice (I): Facts and political theories," Economics Working Papers 384, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Stenberg, Anders, 2006. "Skill needs and continuing vocational training in Sweden," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-109, WZB Berlin Social Science Center.
    8. Brzinsky-Fay, Christian, 2006. "Lost in transition: labour market entry sequences of school leavers in Europe," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-111, WZB Berlin Social Science Center.
    9. Galasso, Vincenzo & Profeta, Paola, 2002. "The political economy of social security: a survey," European Journal of Political Economy, Elsevier, vol. 18(1), pages 1-29, March.
    10. de Koning, Jaap & Kroes, Hassel & van der Steen, Alex, 2006. "Patterns of work and use of benefits over the life course: Estimates and simulations based on Dutch microdata," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-112, WZB Berlin Social Science Center.
    11. Rabe, Birgitta, 2000. "Implementation von Arbeitsmarktpoltik durch Verhandlungen: eine spieltheoretische Analyse," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 122924, December.
    12. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    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. Achim Kemmerling & Michael Neugart, 2019. "Redistributive pensions in the developing world," Review of Development Economics, Wiley Blackwell, vol. 23(2), pages 702-726, May.
    2. 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.
    3. repec:elg:eechap:15325_18 is not listed on IDEAS

    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. Müller, Kai-Uwe, 2007. "Observed and unobserved determinants of unemployment insurance benefit sanctions in Germany: Evidence from matched individual and regional administrative data," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-107, WZB Berlin Social Science Center.
    2. Kemmerling, Achim & Neugart, Michael, 2009. "Financial market lobbies and pension reform," European Journal of Political Economy, Elsevier, vol. 25(2), pages 163-173, June.
    3. Schulze Buschoff, Karin, 2007. "Self-employment and social risk management: Comparing Germany and the United Kingdom," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-103, WZB Berlin Social Science Center.
    4. Kemmerling, Achim, 2007. "The end of work or work without end? The role of voters' beliefs in shaping policies of early exit," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-108, WZB Berlin Social Science Center.
    5. Schulze Buschoff, Karin & Schmidt, Claudia, 2006. "Own-account workers in Europe: Flexible, mobile, and often inadequately insured," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-122, WZB Berlin Social Science Center.
    6. Schömann, Klaus & Siarov, Liuben & van den Heuvel, Nick, 2006. "Managing social risks through transitional labour markets," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-117, WZB Berlin Social Science Center.
    7. Lassen, Morten & Sørensen, John Houman & Lindkvist Jørgensen, Anja & Møberg, Rasmus Juul, 2006. "Skill needs and the institutional framework: Conditions for enterprise-sponsored CVT - The case of Denmark," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-121, WZB Berlin Social Science Center.
    8. Hartlapp, Miriam & Falkner, Gerda, 2008. "Problems of operationalization and data in EU compliance research," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2008-104, WZB Berlin Social Science Center.
    9. Leschke, Janine, 2007. "Gender differences in unemployment insurance coverage: A comparative analysis," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-106, WZB Berlin Social Science Center.
    10. Wotschack, Philip & Hildebrandt, Eckart, 2007. "Long-term working-time accounts and life-course policies: Preliminary results of a representative company survey," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-109, WZB Berlin Social Science Center.
    11. 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.
    12. Schulze Buschoff, Karin & Schmidt, Claudia, 2007. "Adapting labour law and social security to the needs of the new self-employed: Comparing European countries and initiatives at EU level," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-113, WZB Berlin Social Science Center.
    13. Robert Grafstein, 2009. "Antisocial Security: The Puzzle of Beggar‐Thy‐Children Policies," American Journal of Political Science, John Wiley & Sons, vol. 53(3), pages 710-725, July.
    14. Francesco Lancia & Alessia Russo, 2010. "A Dynamic Politico-Economic Model of Intergenerational Contracts," Center for Economic Research (RECent) 050, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    15. Grossman, Gene M & Helpman, Elhanan, 1998. "Intergenerational Redistribution with Short-Lived Governments," Economic Journal, Royal Economic Society, vol. 108(450), pages 1299-1329, September.
    16. Achim Kemmerling & Michael Neugart, 2019. "Redistributive pensions in the developing world," Review of Development Economics, Wiley Blackwell, vol. 23(2), pages 702-726, May.
    17. Georges Casamatta & L. Batté, 2016. "The Political Economy of Population Aging," Post-Print hal-02520521, HAL.
    18. Bernard M.S. van Praag & Pedro Cardoso, 2003. "The Mix Between Pay-as-you-go and Funded Pensions and What Demography Has to Do with it," CESifo Working Paper Series 865, CESifo.
    19. Grégory De Walque, 2005. "Voting on Pensions: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 181-209, April.
    20. Casamatta, G. & Batté, L., 2016. "The Political Economy of Population Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 381-444, Elsevier.

    More about this item

    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:zbw:wzblpe:spi2006120. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wzbbbde.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.