公的年金의 効率的 連繫方案에 關한 研究

A Study on the Optimal Integration of Korea’s Public Pension Schemes

With the introduction of the national pension, efficient integration of Korea’s four public pension schemes has been discussed. The main point of such discussions is whether to have a progressive scheme or an income-Proportional one. Under the assumption of a perfect labor market, it has been proved in the income tax literature that the regressive tax scheme with the 0% tax rate to the most able person (person earning highest income) is pareto efficient, if there is an incentive problem in the labor supply. In this paper, a life-cycle model with a linear benefit schedule, when there is uncertainty about future earning ability, is studied. It is proved that second best pension scheme is that having a progressive benefit schedule. This result implies that integration into a progressive pension scheme, like the current national pension, is required not only for efficiency but also for equity.