Designing Pension Program to Strengthen Formal Labor Market in Developing Countries

The basic set up of the pension system suggested in this book is multidimensional: a short run consumption tax policy to finance a defined benefit plan to support minimum physical needs of the older population, a medium run labor income tax policy to finance individuals defined contribution fully funded savings plan, and a long run skilled labor creation through university education so that individuals are able to self-finance their own pension savings through the fully funded savings plan. The defined benefit plan is important because it serves as a redistribution tool, while the defined contri-bution plan serves as a savings tool. In addition, the skilled labor creation serves as a supporting tool so that the pension program can be sustained in the long run.

• | Author: Muliadi Widjaja
• | Publisher: VDM Verlag Dr. Mueller E.K.
• | Publication Date: Apr 03, 2008
• | Number of Pages: 148 pages
• | Binding: Paperback or Softback
• | ISBN-10: 383648353X
• | ISBN-13: 9783836483537