Why Sweden's pension reform was able to be successfully implemented

Autor:	Jan Selén, Ann-Charlotte Ståhlberg
Rok vydání:	2007
Předmět:	Economics and Econometrics Defined contribution plan Pension Gradual transition Present value Economic policy media_common.quotation_subject Public policy Legislation Pension system Democracy Political Science and International Relations Economics Economic system media_common
Zdroj:	European Journal of Political Economy. 23:1175-1184
ISSN:	0176-2680
DOI:	10.1016/j.ejpoleco.2007.01.002
Popis:	Governments that do not reform pay-as-you-go (PAYG) pension systems will eventually face a pension crisis. In a democracy, reforms require majority support. The problem is that pension reform requires today's generation to bear the burden to avoid burdening tomorrow's generation. Sweden recently passed pension legislation that specifies a gradual transition from a public defined-benefit plan to a defined contribution plan. Why was Sweden successful in reforming its pension system? We find that a political economy perspective helps to answer this question: there are more winners who would vote in favour of the reform than non-winners who would vote against it. When comparing the net effect (present value of expected benefits minus present value of remaining contributions) of the new and old systems, contributions of the working generation (age
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::67a0a59f1f806b1a0a79331466550db5 https://doi.org/10.1016/j.ejpoleco.2007.01.002 Zobrazit plný text záznamu Full Text from ScienceDirect