A note on intergenerational risk sharing and the design of pay-as-you-go pension programs.
"Different versions of pay-as-you-go public pension programs may have entirely different effects on the intergenerational distribution of income risk. If the pension benefit is a fixed proportion of previous labor income, a pay-as-you-go program increases the net income risk of all generations. On the other hand, a pay-as-you-go program characterized by a fixed labor income tax rate and uncertain pension benefits provides intergenerational risk sharing."
Thogersen
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D000569:Americas; D001695:Biology; D019049:Developed Countries; D004467:Economics; D005376:Financial Management; D006078:Government Programs; D007182:Income; D009656:North America; D009826:Old Age Assistance; D009934:Organization and Administration; D012307:Risk Factors; D012959:Socioeconomic Factors; D013660:Taxes; D014481:United States
Americas; Biology; Developed Countries; Economic Factors; Financial Activities; Government Sponsored Programs; Income; Intergenerational Transfers; Microeconomic Factors; North America; Northern America; Old Age Security; Organization And Administration; Programs; Risk Factors; Socioeconomic Factors; Taxation; United States