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- W2189432816 abstract "We document the political risk of social security i n Hungary and the Czech Republic by measuring the changes in the social security wealth induced by the pension reforms undertaken in these countries since the 1990s. Meth odologically we follow upon McHale’s (2001) study of selected reforms in G7 countries. W e compute the changes in social security wealth separately for representative male and femal e workers in all age cohorts and different educational categories. Our results therefore provi de more comprehensive picture of the differential impacts of pension reforms on differen t workers. The Czech 1996 reform reduced the social security wealth of almost all workers by the magnitude of 2 to 3 annual average earnings. The negative impact was more pronounced for women but was distributed fairly equally across cohorts and income levels. In Hungar y, the early (1993 and 1997) reforms had negative impact on workers near the retirement age. The 1998 reform which introduced a privately funded second pillar was highly advantage ous for middle-aged and young men with university education but had a negative impact on m ost other workers, and exposed workers to additional uncertainty about future taxation of benefits. Overall, the paper documents that pay-as-you-go system is not a predictable source of income since legislative reforms, particularly in the Hungarian case, do frequently c hange the future taxes and benefits in different directions for different people." @default.
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- W2189432816 date "2007-01-01" @default.
- W2189432816 modified "2023-09-27" @default.
- W2189432816 title "Political Risk of Social Security: Evidence from Re forms in Hungary and the Czech Republic 1" @default.
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