Publication detail

Pension Reform in the Czech Republic: Not a Lost Case?

Author(s): doc. Ing. Ondřej Schneider MPhil., Ph.D.,
Type: IES Working Papers
Year: 2006
Number: 2
Published in: IES WP 2006/2
Publishing place: Prague
Keywords: pension systems, pay-as-you-go, pension reform, funded pillar
JEL codes: C68, E17, H55
Suggested Citation: Schneider, O. (2006). “Pension reform in the Czech Republic: Not a Lost Case? ” IES Working Paper 2/2006, IES FSV. Charles University.
Abstract: In this paper, we combine macro and microeconomic approaches to a pension reform. First, we modify an OLG model and estimate macroeconomic effects of a pension systém switch from a pure PAYG to a mixed system. Second, we employ macroeconomic results in a microeconomic simulation in which we estimate individual welfare gains for various income groups in each cohort affected by the pension reform. We propose an unorthodox sequencing of the pension reform in which the pre-retirement generations would enter the reformed system first. This sequencing maintains the Pareto efficiency condition for all age cohorts, but it gives governments more flexibility in the reform process.
Downloadable: WP 2006_2 Schneider




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