Template-Type: ReDIF-Paper 1.0 Author-Name: Marie Claude Kamar Author-Name-First: Marie Claude Author-Name-Last: Kamar Author-Email: marieclaude.kamar@usj.edu.lb Author-Workplace-Name: Université Saint Joseph Author-Name: Riccardo Magnani Author-Name-First: Riccardo Author-Name-Last: Magnani Author-Email: riccardo.magnani@univ-paris13.fr Author-Workplace-Name: Université Sorbonne Paris Nord and CEPN Title: Population ageing and labor market frictions. An OLG model applied to Lebanon Abstract:

We evaluate the effects of population ageing on the macroeconomic evolution of the Lebanese economy and on the financial sustainability of its major pension schemes. We use an OLG model with labor market frictions in the as in de la Croix et al. (2013). Individuals are differentiated by age, gender, and education and choose the sector of activity, which implies that the size of the informal sector is endogenous. We assess the long-run implications of population ageing and show that the public sector pension scheme is unsustainable while the private sector scheme is insufficient to ensure decent living standards for the elderly. Finally, we evaluate the effects of two pension reforms; in the first one we propose a mix of measures aiming at guaranteeing the sustainability of the public sector scheme; in the second one we propose some measures aiming at increasing the size of the private sector scheme. Creation-Date: 2022-04 File-URL: https://www.sitesideas.org/wp-content/uploads/2022/05/Sites_wp3.pdf File-Format: Application/pdf Note: SITES Working Papers 3 Number: 3 Classification-JEL: J11, E62, H55 Keywords: Pensions, Population ageing, OLG models, Labor market frictions Handle: RePEc:awm:wpaper:3