East Asia Workshop: Politics, Economy and Society Presents
“Sharing High Growth across Generations:
Pensions and Demographic Transition in China”
Presenter: Zheng Michael Song
Assistant Professor of Economics
University of Chicago Booth School of Business
October 23, 2012
Pick Lounge, 5828 South University Ave.
Intergenerational inequality and old-age poverty are salient issues in contemporaryChina.China’s aging population threatens the fiscal sustainability of its pension system, a key vehicle for intergenerational redistribution. We analyze the positive and normative effects of alternative pension reforms, using a dynamic general equilibrium model that incorporates population dynamics and productivity growth. Although a reform is necessary, delaying its implementation implies large welfare gains for the (poorer) current generations, imposing only small costs on (richer) future generations. In contrast, a fully funded reform harms current generations, with small gains to future generations. High wage growth is key for these results.
Workshop website: http://cas.uchicago.edu/workshops/eastasia/
Student coordinator: Le Lin (firstname.lastname@example.org)
Faculty sponsors: Dali Yang, Dingxin Zhao and Zheng Michael Song
This presentation is sponsored by the Council on Advanced Studies in Humanities and Social Sciences and Center for East Asian Studies. Persons with disabilities who believe they may need assistance please contact the student coordinator in advance.