Fig. 3

Simulated actuarially fair contribution rate by X and unemployment level. Source: author’s calculation, using a simulated population. The asterisk indicates the replacement rate is set at 50% in the base case and is set at a higher/lower value in the lower/higher unemployment scenario to facilitate the graphical comparison (by keeping the risk-pooling actuarially fair contribution at 3.4). The unemployment level refers to the one before introducing the individual accounts. The pure risk-pooling average duration of unemployment/employment is set to 6/60 months. F, the percentage increase in the job finding rate during the self-financeable stage of the unemployment spell, is set at 30%