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Article Dans Une Revue Hacienda pública española Année : 2006

Recent work on the theory of early retirement

Résumé

Pension systems are often blamed for distorting the retirement age and they are held responsible for the widely observed trend towards early retirement. In a world of laissez-faire or in a first-best setting, there would be no such distortions. However, they may be unavoidable when first-best instruments are not available, because health and productivity are not observable. We show that while there is no doubt that retirement age is too low in many countries, a complete elimination of this bias is not the right answer. In other words, reforms that involve a switch to an actuarially fair system would be overshooting. We present normative and positive arguments. First, some distortions are second-best optimal. Second, and on the positive side, the elimination of the bias might be problematic from a political perspective.
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Dates et versions

hal-02657879 , version 1 (30-05-2020)

Identifiants

  • HAL Id : hal-02657879 , version 1
  • PRODINRA : 19884
  • WOS : 000246745200001

Citer

Pierre Pestieau, Helmut Cremer, Jean-Marie Lozachmeur. Recent work on the theory of early retirement. Hacienda pública española, 2006, 179 (4), pp.9-24. ⟨hal-02657879⟩
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