Vertical Equity under Transformation: Family Change, Cross-Border Mobility, and Sustainability in Public Pension Systems
Project Description
Public pension systems face mounting fiscal pressure from population aging and declining fertility. To ensure social protection, they rely on vertical equity, redistributing toward lower income groups. While this promotes fairness, it raises concerns about long run sustainability. At the same time, shifting social patterns are reshaping redistribution: higher female employment strengthens individual entitlements; the rise of non marital unions questions the role of income splitting and survivor pensions; and migration and cross border commuting produce fragmented contribution histories.
This project examines how family structures, labour market patterns, and cross-border mobility shape vertical redistribution in pensions. Using dynamic microsimulation and distributional decomposition, we will evaluate reform scenarios that balance equity and fiscal sustainability, with transferable insights for Liechtenstein given its close institutional proximity to Switzerland.
This project examines how family structures, labour market patterns, and cross-border mobility shape vertical redistribution in pensions. Using dynamic microsimulation and distributional decomposition, we will evaluate reform scenarios that balance equity and fiscal sustainability, with transferable insights for Liechtenstein given its close institutional proximity to Switzerland.
