Efficiency and Equity Aspects of Alternative Social Security Rules

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Resumé

This paper studies human-capital formation, labor-supply, and retirement decisions associated with four alternative regimes of social security. We implement a theoretical model with overlapping generations of households and two different ability types within each generation. We find that with a given social security contribution rate, it is better to transfer income to the elderly as old-age benefits, paid independently of labor-market status. This holds with both Bismarckian and Beveridgean benefits. With sufficiently small ability differences, a Bismarckian system of old-age benefits is likely to offer the highest level of utility to all citizens.
OriginalsprogEngelsk
TidsskriftFinanzarchiv
Vol/bind60
Udgave nummer3
Sider (fra-til)325-358
ISSN0015-2218
StatusUdgivet - 2004
Udgivet eksterntJa

Citer dette

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title = "Efficiency and Equity Aspects of Alternative Social Security Rules",
abstract = "This paper studies human-capital formation, labor-supply, and retirement decisions associated with four alternative regimes of social security. We implement a theoretical model with overlapping generations of households and two different ability types within each generation. We find that with a given social security contribution rate, it is better to transfer income to the elderly as old-age benefits, paid independently of labor-market status. This holds with both Bismarckian and Beveridgean benefits. With sufficiently small ability differences, a Bismarckian system of old-age benefits is likely to offer the highest level of utility to all citizens.",
author = "{Hougaard Jensen}, {Svend E.} and Morten Lau and Panu Poutvaara",
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Efficiency and Equity Aspects of Alternative Social Security Rules. / Hougaard Jensen, Svend E.; Lau, Morten; Poutvaara, Panu.

I: Finanzarchiv, Bind 60, Nr. 3, 2004, s. 325-358.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Efficiency and Equity Aspects of Alternative Social Security Rules

AU - Hougaard Jensen, Svend E.

AU - Lau, Morten

AU - Poutvaara, Panu

PY - 2004

Y1 - 2004

N2 - This paper studies human-capital formation, labor-supply, and retirement decisions associated with four alternative regimes of social security. We implement a theoretical model with overlapping generations of households and two different ability types within each generation. We find that with a given social security contribution rate, it is better to transfer income to the elderly as old-age benefits, paid independently of labor-market status. This holds with both Bismarckian and Beveridgean benefits. With sufficiently small ability differences, a Bismarckian system of old-age benefits is likely to offer the highest level of utility to all citizens.

AB - This paper studies human-capital formation, labor-supply, and retirement decisions associated with four alternative regimes of social security. We implement a theoretical model with overlapping generations of households and two different ability types within each generation. We find that with a given social security contribution rate, it is better to transfer income to the elderly as old-age benefits, paid independently of labor-market status. This holds with both Bismarckian and Beveridgean benefits. With sufficiently small ability differences, a Bismarckian system of old-age benefits is likely to offer the highest level of utility to all citizens.

M3 - Journal article

VL - 60

SP - 325

EP - 358

JO - Finanzarchiv

JF - Finanzarchiv

SN - 0015-2218

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