Making due allowances for differences in demographics, the labour market and internal migration dynamics, this study analyses the sustainability of the Italian pension balance at a regional level. A worsening of the elderly dependency ratio and a decline in birth and employment rates have...

We suggest a political economy explanation for the stylized fact that intragenerationally more redistributive social security systems are smaller. We relate the stylized fact to an "efficiencyredistribution" trade-off to be resolved by political process. The inefficiency of social security...

A Beveridgean pension scheme invariably introduces a wedge between the wage rate and the marginal take-home pay. A Bismarckian one can do so only if it is not actuarially fair, or in the presence of credit rationing. Interestingly, if the two possible sources of distortion are present at the...

Intergenerational transfers occur within every society. Those who are able to provide for more than their own needs directly or indirectly provide resources to those who are unable to care for themselves. Each society must somehow choose from the set of all possible transfers a particular...

Using an OLG model with pension system and unemployment insurance, this paper analyses the effect of low-skilled immigration (regular and irregular) shocks on the wellbeing of the native people. We show that low-skilled immigration benefits the pensioners of the initial period and skilled native...

We analyse the distribution of pension benefits induced by pension systems moving from a defined benefit formula to a notional defined contribution one. We focus on the reforms that took place in Italy between 1992 and 2004, differently affecting various cohorts of workers. We develop a...

Employing an overlapping generations endogenous growth model in which parents derive utility from having children and, additionally, expect children to support them in old age, this paper explores the interrelation between growth, fertility, and the size of pay-as-you-go financed public...

Options for reforming unfunded public pension schemes that are now being discussed all share the feature that the burden induced by demographic change would be shifted towards presently living and away from unborn generations. Existing models of the political economy of pension reform can not...

In this paper we investigate the possibilities of Pareto-improving reforms of a pay-as-you-go (PAYG) pension system in a framework of endogenous growth. Belan et al. (1996) propose a transition of a PAYG system to a system of savings--subsidization. We follow this approach and prove that a...

The interaction of social security (based on the two pillars unemployment insurance and public pension system), unemployment, and economic growth is considered in an overlapping generations model with endogenous growth and efficiency wages. The impact of each worker's and employer's social...