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http://dx.doi.org/10.5351/KJAS.2015.28.4.807

The National Pension and Restructuring of Intergenerational Contracts  

Jung, Haesik (Korea Institute for Health and Social Affairs)
Joo, Eunsun (Department of Social Welfare, Kyonggi University)
Publication Information
The Korean Journal of Applied Statistics / v.28, no.4, 2015 , pp. 807-826 More about this Journal
Abstract
Generational contracts are specified into public pensions based on generational solidarity. The Korean National Pension has been reformed with a focus on generational equity with a narrow meaning related to contribution rate and benefit level. As a result, the Korean National Pension has only emphasized generational equity and not contributed to generational solidarity. We investigate changes in the content of the generational contract and propose to reconstruct generational contract to contribute to solidarity with a more comprehensive perspective. A new social contract by reformed pension system should not concentrate on narrowed generational equity. It should be reconstructed in the direction of enhancing efficacy and the stability of generational solidarity with an emphasis on social sustainability. Investment into the next generation would be one of many policy measures to decrease conflicts around intergenerational redistribution and improve the financial stability of the public pension by creating population structure and labor market changes.
Keywords
intergenerational solidarity; generational equity; intergenerational contract; social sustainability; national pension;
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