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M. Sánchez-Romero, J. Sambt, A. Fürnkranz-Prskawetz:
"Quantifying the role of alternative pension reforms on the Austrian economy";
Labour Economics, 22 (2012), 94 - 114.

This paper investigates the role of recent pension reforms for the development of the social security system and
economic growth in Austria.Weuse a computable general equilibriummodel that is built up of overlapping generations
that differ by their household structure, longevity, educational attainment, and capital accumulation.
Each household optimally decides over its consumption paths, work effort, and retirement age according to
the life-cycle theory of labor, while they face survival risk. We find that the pension reforms implemented
from2000 to 2004, although in the correct direction, are not sufficient to solve the labor market distortion caused
by the Austrian pay-as-you-go (PAYG) pension system. Using alternative policy options, our simulations indicate
that a change to a notional defined contribution system and an increase in the educational distribution of the
work forcewould increase the incentive for later retirement ages and thereby increase labor supply and economic
growth.