We develop a model of an overlapping generations economy characterized by private pensions where risk averse agents … a result of differences in the costs of administering pension funds. Thus, identical agents' pensions may yield …

experienced a major shift in pension coverage. Traditional defined benefit pensions, designed to reward long tenure, have become … steadily less common, while defined contribution pensions, which are largely portable, have spread. The link between job tenure … value of existing jobs relative to new jobs reduces expected match duration and thus the appeal of DB pensions. We argue …

retirement pensions. In contrast to existing literature, we endogenously determine optimal policies rather than exploring … guarantee the financial sustainability of existing retirement pensions in a Pareto improving way. Hence, no cohort will pay the … compulsory retirement, a change in the structure of labor income taxation and a temporary increase in the level of government …

Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which …-based contracts like DB pensions to reduce the incidence of costly on-the-job search by workers. Either reduced search costs or an … use of DB pensions. …

We develop a model of retirement and human capital investment to study the effects of tax and retirement policies … a significant fraction of the US-Europe difference in schooling and retirement. The model predicts that reforms of the … European retirement policies modeled after the US can deliver 15–35 percent gains in per-worker output in the long run …