Labor Mobility, Redistribution, and Pension Reform in Europe

Abstract

This chapter discusses the main characteristics of European mandatory pension systems and the implications of increasing factor mobility for these systems. Section 3.2 illustrates some of the core features of European pension systems and compares them to those of the United States when useful. It also discusses some issues relating to mobility in the middle and at the end of the working life. Section 3.3 presents some insights into which paths European governments can take toward reform. Section 3.4 deals with the direct implications of labor mobility on various provisions of pension systems. It uses findings from the literature on fiscal federalism to illustrate some of the potential effects of mobility. Section 3.5 addresses the types of mobility within the life cycle other than that at the beginning of the working life, while Section 3.6 draws conclusions. A commentary and discussion summary are also included at the end of the chapter.

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