A Simple Model Referring Evasion Case in Albanian Pension System

HYSA, Eglantina (2012) A Simple Model Referring Evasion Case in Albanian Pension System. Journal of Economic and Social Studies, 2 (1). pp. 143-157. ISSN 1986 – 8502

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Abstract

This study deals with the relationship between underreported earnings, savings and old-age pension. The presented model is taken from the paper “Underreported Earnings and Old-Age Pension System: An Elementary System” of Hungarian Academy of Science and is applied to the Albanian data. Three pension systems have been compared: 1- the proportional, 2- the proportional plus basic pension and, 3- the proportional with means testing. The workers are grouped such as, awell- paid who report their full earnings (so-called the evaders), b- wellpaid who report only the minimum earnings and c- the poorly paid. It is assumed that the evaders have a hidden part of earnings for their oldage. The main result of the study is the following: if the evaders can be recognized and excluded, then the best system is the means-tested one.

Item Type: Article
Uncontrolled Keywords: Reporting Earnings, Proportional Pension, Basic Pension, Meanstested Pension
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Depositing User: Mr. Ibrahim Kinal
Date Deposited: 25 Jun 2012 08:42
Last Modified: 31 Jan 2013 10:21
URI: http://eprints.ibu.edu.ba/id/eprint/1074

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