Saturday, April 12, 2008

Analysis of Piketty-Bozio Plan

Ceteris Paribus has an interesting analysis of the Piketty-Bozio retirement reform that I discussed yesterday. He remarks that one drawback of the plan is that it will reduce the benefits to civil servants, whose current retirement regime is more favorable than the private sector regime. Hence in addition to the political opposition that I mentioned yesterday from the "social partners" who manage the existing system and derive considerable "rents" from their privileged position, civil servants (and their unions) will have a further reason for opposition.

No comments: