In this paper we investigate the impact of a reduction in the pension replacement rate on the schooling choice and on inequality. We develop an overlapping generations model in which individuals differ by their life expectancy and in the cost of attending schooling. Individuals optimally choose...

Pension systems in European countries are under review due to demographic changes. As a solution to the graying population, second and third pillar pensions are advocated. However, it is important not to lose sight of the social consequences of encouraging these private pensions. In this master...