Download full text
(317.8Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-258634
Exports for your reference manager
The politics of automatic stabilization mechanisms in public pension programs
Die Politik der automatischen Stabilisierungsmechanismen in öffentlichen Pensionsprogrammen
[working paper]
Corporate Editor
Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Abstract "Demographic and fiscal pressures have increased pressures on governments in most wealthy countries to reduce the generosity of their public pension programs. Mechanisms that automatically adjust public pension levels to take account of factors such as increased life expectancy and slower economic g... view more
"Demographic and fiscal pressures have increased pressures on governments in most wealthy countries to reduce the generosity of their public pension programs. Mechanisms that automatically adjust public pension levels to take account of factors such as increased life expectancy and slower economic growth are appealing to politicians because it saves them from having to take loss-imposing actions that are likely to incur political blame. This paper analyzes the financial and political potential of automatic stabilizing mechanisms (ASMs), beginning with a discussion of design issues and alternatives. This is followed by a discussion of potential adoption, implementation, and sustainability challenges for automatic stabilizing mechanisms and a review of experiences with stabilization mechanisms in three countries: Canada, Sweden and Germany. The paper argues that ASMs are vulnerable to erosion over time, especially when the losses that the ASM would impose are substantial, and when elections are impending. Preserving the integrity of ASMs is most likely where the parties that initially supported their adoption continue to be able to sustain cartel-like behavior with respect to pension policymaking. Overall, the analysis in this paper suggests that automatic stabilizing mechanisms are no panacea for the problems of countries facing serious long-term pension financing problems." (author's abstract)... view less
Keywords
retirement pension; Sweden; sustainability; Federal Republic of Germany; stabilization; funding; international comparison; welfare state; population development; pension; program; politics; Canada
Classification
Population Studies, Sociology of Population
Social Security
Method
qualitative empirical; applied research; empirical
Document language
English
Publication Year
2011
City
Berlin
Page/Pages
43 p.
Licence
Deposit Licence - No Redistribution, No Modifications
Data providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne