✦ LIBER ✦
Long-run effects of unfunded social security with earnings-dependent benefits
✍ Scribed by Jie Zhang; Junsen Zhang
- Book ID
- 104293383
- Publisher
- Elsevier Science
- Year
- 2003
- Tongue
- English
- Weight
- 336 KB
- Volume
- 28
- Category
- Article
- ISSN
- 0165-1889
No coin nor oath required. For personal study only.
✦ Synopsis
This paper examines the e ects of unfunded social security with bequests, fertility and human capital by considering a mix of earnings-dependent and universal social security beneÿts. We show that social security is more likely to promote growth by reducing fertility and increasing human capital investment if its beneÿts are more dependent on individuals' own earnings. Through simulations, we ÿnd that the di erences in the e ects of social security resulting from variations in the beneÿt formula can be too substantial to be ignored. We also investigate the welfare e ect in calibrated economies.