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Is Pension Reform Conducive to Higher Saving?
- Source :
- Review of Economics & Statistics; May2000, Vol. 82 Issue 2, p264-272, 9p, 5 Graphs
- Publication Year :
- 2000
-
Abstract
- Declining fertility, mortality, and productivity rates in developed countries and the popularity of the social security privatization in Chile as a pathway to financial development have sparked a global interest in social security reform. This paper analyzes the effect of social security on saving using a panel of countries over 25 years. Variation in the characteristics of social security systems is used to determine whether less reliance on a pay-as-you-go, unfunded system is associated with higher national saving. There is little evidence that countries that implement defined-contribution reforms have higher trends in saving rates after the reform. Cross-sectionally, countries with pay-as-you-go systems tend to have lower saving rates, and this effect increases with the coverage rate on the system. [ABSTRACT FROM AUTHOR]
- Subjects :
- SOCIAL security
ECONOMICS
PRIVATIZATION
SAVINGS
PENSIONS
REFORMS
DEVELOPED countries
Subjects
Details
- Language :
- English
- ISSN :
- 00346535
- Volume :
- 82
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Review of Economics & Statistics
- Publication Type :
- Academic Journal
- Accession number :
- 3200317
- Full Text :
- https://doi.org/10.1162/003465300558777