Adequacy of Old-Age Income Maintenance in the EU (AIM)

AIM is a 6th Framework Specific Targeted Research Project of the European Network of Policy Research Institutes (ENEPRI) coordinated by Jorgen Mortensen (CEPS). See the homepage of the entire project at TARKI is responsible for work package (WP) 3 and it participates in WP5, WP8, WP9 and WP10.

The project proposal has two main scientific objectives: First, the work programme includes an important research component addressing the methodology of analysis of pension schemes and pension reforms. This objective is pursued in two ways: (i) by undertaking model simulations in common and in a coordinated framework within a single work package and (ii) by undertaking a systematic examination of the simulation properties of simulation models including also models in application outside the Consortium.

Second, the project will apply these analytical tools to examine the concept of "adequacy" and undertake research on the impact on the adequacy of pensions of parametric reforms proposed in certain general plans to ensure sustainability of pension systems. In general the research on adequacy assumes sustainability and analyses the consequences for the adequacy objectives. The work programme is structured in seven main components: (i) Three work packages dealing with scientific coordination and general conceptual issues (WP1), classification of pension systems (WP2) and public perceptions of pension issues (WP3). (ii) The second group includes two work packages dealing with simulation models. The first work package (WP4) will include micro-simulation and semi-aggregate simulation models, which will complement the insights provided by the first approach. A second work package (WP5) will involve a broader assessment of simulation properties of pension models in general. These two work packages will be the essential toolbox for the other work packages in the project. (iii) A component of two work packages aiming at translating parametric changes of welfare systems into more detailed changes in features of pension systems and incentives for early retirement and at studying the effects on the labour markets (WP6) and actuarial fairness (WP7). (iv) A component of three work packages focusing on the impact of the various parametric changes on the key adequacy objectives: income inequality and social inclusion (WP8), maintenance of standard of living after retirement (WP9) and inter-and intra-generational solidarity (WP10). (vi) A work package drawing the conclusions for social policy of the estimated impacts and assessing the overall implications for policy decisions of the findings concerning the simulation properties of models. (vii) A work package involving management and administration.

TARKI's partners in the project:

  • Centre for European Policy Studies, CEPS, Belgium, coordinator
  • Federal Planning Bureau, FPB, Belgium
  • Deutsches Institut für Wirtschaftsforschung (German Institute for Economic Research), DIW, Germany
  • Elinkeinoelämän tutkimuslaitos (The Research Institute of The Finnish Economy), ETLA, Finland
  • Fundación de Estudios de Economía Aplicada, FEDEA, Spain
  • Social and Cultural Planning Office, SCP, Netherlands
  • Istituto di Studi e Analisi Economica (Institute for Studies and Economic Analysis), ISAE, Italy
  • National Institute for Economic and Social Research, NIESR, United Kingdom
  • Centrum Analiz Spolleczno-Ekonomicznych (Center for Social and Economic Research), CASE, Poland
  • Centre for Research on Pensions and Welfare Policies, CeRP, Italy
  • Institut za ekonomska raziskovanja (Institute for economic research), IER, Slovenia
  • Institute of Slovak and World Economy, ISWE, Slovak Republic

Time frame: 2005-2008.

Researchers in the TARKI WPs: Robert I. Gal, Bela Janky, Andras Simonovits.

TARKI's contributions to the project:

  • Janky, B. (2005): Empirical Foundations for Political Economy Models of Intergenerational Redistribution: A Survey. Manuscript.
  • Janky, B. and Gal, R.I. (2006): Public Opinion on Pension Systems in Europe. Manuscript.