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In East Germany a profound demographic change has been taking place that manifests itself in the shrinkage and the … reunification of Germany in 1990. In no other countries of the former Eastern Bloc, this process was so drastic and abrupt as in … East Germany. Around the year 2007, the small after-reunification cohorts started to enter the East German labor market …
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This paper investigates how demographic change affects the financial sustainability of apay-as-you-gosocialsecuritysysteminanenvironmentwithcollectivebargainingonthe labor market. Partial equilibrium analysis shows that the contribution rate or the benefit level decreases, if the old-age...
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