Intergenerational Risk Sharing, Pensions, and Endogenous Labour Supply in General Equilibrium

摘要

We show that a two-tier pension system, with a pay-as-you-go first tier and a fully funded, defined wage-indexed second tier, can provide for optimal intergenerational risk-sharing without distorting the labour supply, thereby achieving the first best. Other arrangements with a fully-funded second tier fail to achieve the first best.