Designing Pension Program toStrengthen Formal Labor Market in Developing Countries

The basic set up of the pension system suggested in this book is multidimensional: a short run consumption tax policy to finance a defined benefit plan to support minimum physical needs of the older population, a medium run labor income tax policy to finance individuals defined contribution fully funded savings plan, and a long run skilled labor creation through university education so that individuals are able to self-finance their own pension savings through the fully funded savings plan. The defined benefit plan is important because it serves as a redistribution tool, while the defined contribution plan serves as a savings tool. In addition, the skilled labor creation serves as a supporting tool so that the pension program can be sustained in the long run.

Autorentext
Muliadi Widjaja Muliadi Widjaja was born in 1970 in Jakarta, Indonesia and received his PhD degree in economics from economics department,Georgia State University, United States, in 2007. His graduate studies are in the area of public finance. His PhD dissertation is in the area of pension for developing countries, applying dynamic CGE model.