Format:
1 Online-Ressource (50 p)
Series Statement:
Netspar Discussion Paper No. 08/2010-032
Content:
Demographic projections forecast a doubling of the dependency ratio until 2050 as well as an increase of 10% in population due to longer life expectancy in Switzerland. To quantify the effects on social security and public finances, we use a computational overlapping generations model with five margins of labor supply: labor market participation, hours worked, job search, retirement, and on-the-job training. Starting with a passive fiscal strategy, we find that aging might reduce per capita income by 20 percent and necessitate a long-run increase of wage taxes and social security contributions by 21 percentage points. A comprehensive reform package, including an increase in the effective retirement age to 68 years and several other measures, may limit the tax increases to 4 percentage points of value added tax and reduce the decline of per capita income to less than 6%
Note:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 16, 2010 erstellt
Language:
English
DOI:
10.2139/ssrn.1692725
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