Suchergebnisse

The design of the educational system affects the degree of students' equality of opportunities and the intergenerational social mobility. The topic is therefore of paramount importance. In this paper, we document differences in educational systems among OECD countries and argue that the system observed in a country is the result of a complex interaction between preferences for education and political competition. To analyse individual preferences over education funding, we build a model that allows us to study the effects of public funding on the welfare of agents, which are heterogeneous in terms of income and human capital. The model takes into account the hierarchical nature of the educational system and emphasises the role played by family background. Our theoretical results might help to explain why some OECD countries seem to remain stuck in "low education" traps.

The Ageing Working Group (AWG) assesses the long-term sustainability of public finances by presenting a set of public expenditure projections for all Member States, including projections on pensions. These projections are based on demographic forecasts and agreed assumptions on key economic variables. The adequacy and sustainability of pensions are, however, two sides of the same coin and a full assessment of pensions therefore requires integration. This paper applies the dynamic micro-simulation model MIDAS to assess the consequences of the AWG projections and assumptions on the future adequacy of public pensions in Belgium, Germany and Italy. A comparison of the simulation results suggests that the impact of the parametric pension reform in Belgium and Germany and the systemic reform in Italy on (re) distribution and the risk of low-income go in the same direction, but that the magnitudes differ. Indeed, the impact is stronger in Italy than in Belgium and Germany. In the latter especially, important changes safeguarding the sustainability of the pension system seem to have had a relatively small impact on the risk of low-income among pension benefit recipients in particular.