Citation

Discussion Paper Details

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Title: The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal For a Partial Transition to a Funded System

Author(s): Hans-Werner Sinn

Publication Date: November 1997

Keyword(s): Children, Immigration, Pay-As-You-Go and Pension Systems

Programme Area(s): Financial Economics

Abstract: It is shown that the net fiscal externality created by an additional member of a pay-as-you-go-pension system that is endowed with individual accounts equals the gross contributions of this member. In Germany, this equals about 175,000 Deutsche marks. The paper uses this information to design a hybrid funded system that avoids this externality and improves the public pension system under equity and efficiency considerations.

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Bibliographic Reference

Sinn, H. 1997. 'The Value of Children and Immigrants in a Pay-As-You-Go Pension System: A Proposal For a Partial Transition to a Funded System'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1734