Pay-as-you-go pension schemes can redistribute lifetime income from the rich to the poor. To achieve this redistributive objective, the United States and the Philippines provide higher wage replacement rates for individuals with lower lifetime wages. The Netherlands uses a flat benefit and Switzerland a combination of employment-related flat and progressive earnings-related benefits. Many developing countries use explicit minimum or maximum pension levels for the same purpose. None of these mechanisms seems to work as expected. Not a single study for any country has presented strong evidence that the public pension scheme has substantially redistributed income from the lifetime rich to the lifetime poor once mortality differences are taken into account. In fact, in some countries, the redistribution goes from the poor to the rich.
详细
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文件日期
1994/11/30
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文件类型
简介
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报告号
24798
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卷号
1
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Total Volume(s)
1
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国家
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地区
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发布日期
2002/10/04
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Disclosure Status
Disclosed
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文件名称
Redistribution across income levels in pay-as-you-go
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关键词
lifetime income;private sector worker;pension scheme;income workers;public pension;wage replacement rate;pension fund reserve;public pension scheme;social security system;age of entry;standard of living;low-income worker;general revenues;mortality differences;minimum wage;development policy;payroll tax;work force;individual bank;married couple;net transfer;income rate;transfer income;common feature;tax deductibility;pension program;financing mechanism;high wage;public scheme;age-earnings profile;empirical study;Labor Market;dependency ratio;market rate;longer period;industrial country;pension credit;
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