From Bismarck to Beveridge: the other pension reform in Spain

Ageing is the major challenge for the PAYG pension systems in developed countries. Most of them are undergoing reforms in order to adapt to the new demographic reality. The package of reforms implemented includes increasing the retirement age, reducing the replacement rate, or introducing a sustaina...

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Detalles Bibliográficos
Autores: Conde Ruiz, José Ignacio, González, Clara Isabel
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/23582
Acceso en línea:https://hdl.handle.net/20.500.14352/23582
Access Level:acceso abierto
Palabra clave:H55
J11
J26
Ageing
Spanish pension system
Reform
Sustainability
Accounting projection model.
Derecho laboral
Economía pública
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oai_identifier_str oai:docta.ucm.es:20.500.14352/23582
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repository_id_str
spelling From Bismarck to Beveridge: the other pension reform in SpainConde Ruiz, José IgnacioGonzález, Clara IsabelH55J11J26AgeingSpanish pension systemReformSustainabilityAccounting projection model.Derecho laboralEconomía públicaAgeing is the major challenge for the PAYG pension systems in developed countries. Most of them are undergoing reforms in order to adapt to the new demographic reality. The package of reforms implemented includes increasing the retirement age, reducing the replacement rate, or introducing a sustainability factor linking pension to life expectancy. The aim of this paper is to analyse the potential consequences of a different type of reform that is at a very incipient stage in Spain but that could have a significant impact if it were fully implemented. This reform, called ‘silent reform’ because it is imperceptible to citizens in its early stages, basically consists in increasing maximum pensions in line with inflation instead of wage or productivity growth. This policy is reducing the replacement rate only for high earning workers and increasing the redistributive component of the system. This paper is the first to quantify and evaluate the potential consequences of this type of reform in Spain. We have used an accounting model with heterogeneous agents and overlapping generations in order to project pension expenditure for the next six decades. The results show that this type of reform could potentially contain future expenditure but at the cost of changing the nature of the pension system from a contributory or Bismarckian-type system into a pure redistributive pension system or Beveridgean-type one.Springer Berlin HeidelbergUniversidad Complutense de Madrid20162016-01-0120162016-01-01journal articlehttp://purl.org/coar/resource_type/c_6501info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/20.500.14352/23582reponame:Docta Complutenseinstname:Universidad Complutense de Madrid (UCM)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:docta.ucm.es:20.500.14352/235822026-06-02T12:44:21Z
dc.title.none.fl_str_mv From Bismarck to Beveridge: the other pension reform in Spain
title From Bismarck to Beveridge: the other pension reform in Spain
spellingShingle From Bismarck to Beveridge: the other pension reform in Spain
Conde Ruiz, José Ignacio
H55
J11
J26
Ageing
Spanish pension system
Reform
Sustainability
Accounting projection model.
Derecho laboral
Economía pública
title_short From Bismarck to Beveridge: the other pension reform in Spain
title_full From Bismarck to Beveridge: the other pension reform in Spain
title_fullStr From Bismarck to Beveridge: the other pension reform in Spain
title_full_unstemmed From Bismarck to Beveridge: the other pension reform in Spain
title_sort From Bismarck to Beveridge: the other pension reform in Spain
dc.creator.none.fl_str_mv Conde Ruiz, José Ignacio
González, Clara Isabel
author Conde Ruiz, José Ignacio
author_facet Conde Ruiz, José Ignacio
González, Clara Isabel
author_role author
author2 González, Clara Isabel
author2_role author
dc.contributor.none.fl_str_mv Universidad Complutense de Madrid
dc.subject.none.fl_str_mv H55
J11
J26
Ageing
Spanish pension system
Reform
Sustainability
Accounting projection model.
Derecho laboral
Economía pública
topic H55
J11
J26
Ageing
Spanish pension system
Reform
Sustainability
Accounting projection model.
Derecho laboral
Economía pública
description Ageing is the major challenge for the PAYG pension systems in developed countries. Most of them are undergoing reforms in order to adapt to the new demographic reality. The package of reforms implemented includes increasing the retirement age, reducing the replacement rate, or introducing a sustainability factor linking pension to life expectancy. The aim of this paper is to analyse the potential consequences of a different type of reform that is at a very incipient stage in Spain but that could have a significant impact if it were fully implemented. This reform, called ‘silent reform’ because it is imperceptible to citizens in its early stages, basically consists in increasing maximum pensions in line with inflation instead of wage or productivity growth. This policy is reducing the replacement rate only for high earning workers and increasing the redistributive component of the system. This paper is the first to quantify and evaluate the potential consequences of this type of reform in Spain. We have used an accounting model with heterogeneous agents and overlapping generations in order to project pension expenditure for the next six decades. The results show that this type of reform could potentially contain future expenditure but at the cost of changing the nature of the pension system from a contributory or Bismarckian-type system into a pure redistributive pension system or Beveridgean-type one.
publishDate 2016
dc.date.none.fl_str_mv 2016
2016-01-01
2016
2016-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/20.500.14352/23582
url https://hdl.handle.net/20.500.14352/23582
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer Berlin Heidelberg
publisher.none.fl_str_mv Springer Berlin Heidelberg
dc.source.none.fl_str_mv reponame:Docta Complutense
instname:Universidad Complutense de Madrid (UCM)
instname_str Universidad Complutense de Madrid (UCM)
reponame_str Docta Complutense
collection Docta Complutense
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,300719

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