Should Old-age Benefits Be Earnings-tested

Määttänen NikuPoutvaara Panu

We study the welfare effects of earnings testing flat-rate old-age benefits in a quantitative overlapping generations model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individualsŽ expected lifetime utility. Moreover, it also lowers the realized lifetime utilities of those at the bottom of the lifetime utility distribution.

Information om publikationen

Serie
Discussion Papers no. 1062
Nyckelord
eläkejärjestelmä, tulotestaus, sosiaalivakuutus
Nyckelord
social security, retirement, means-testing, computational models
JEL
H55,J26,C68
Sidor
28
Pris
10 €
Tillgänglighet av tryckt version
Tillgänglig
Språk
Engelska