The paper examines the following pension reform strategy that aims to defuse the pension time-bomb without giving rise to intergenerational conflict. Let people with rights to public pensions have the option of using a portion of their potential pensions to provide employment vouchers for...

This paper provides a model of social hysteresis whereby long, deep recessions demotivate workers and thereby lead them to change their work ethic. In switching from a pro-work to an anti-work identity, their incentives to seek and retain work fall and consequently their employment chances fall....