As populations age, the strain on government budgets will keep pension reform at the forefront of political campaigns and policy debates worldwide. Elisabeth Artmann, Nicola Fuchs-Schundeln and Giulia Giupponi analyse how pension reforms affect workers who are still many years from retirement. Using a 2014 German policy that increased pension wealth for mothers, the authors show that pension reforms alter not only the expenditure side but also the revenue side of budgets, as workers adjust their immediate labour supply in response to the income effects caused by changes to future pensions.

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22 September 2023

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Vox EU

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https://cepr.org/voxeu/columns/forward-looking-labour-supply-responses-changes-pension-wealth

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