PAYG pensions and human capital accumulation: some unpleasant arithmetic
PAYG pensions and human capital accumulation: some unpleasant arithmetic
A large literature has studied the effects of PAYG systems on fertility, human capital and growth. We argue that the social security system may also interact with longevity when the latter is endogenously determined. We show that in such an environment, in a dynamically efficient economy PAYG pensions must be sufficiently low in order to ensure positive economic growth. Moreover, a transition to a funded social security system will promote growth, and can thereby take place by fully compensating the losers.
pensions, human capital, growth
Cipriani, Giam Pietro
bae009c2-29a9-42e9-ae22-fbdf7df62ac1
Makris, Miltiadis
966df0dc-9caf-409e-9cbe-f2a800cdffda
Cipriani, Giam Pietro
bae009c2-29a9-42e9-ae22-fbdf7df62ac1
Makris, Miltiadis
966df0dc-9caf-409e-9cbe-f2a800cdffda
Cipriani, Giam Pietro and Makris, Miltiadis
(2011)
PAYG pensions and human capital accumulation: some unpleasant arithmetic.
The Manchester School.
(doi:10.1111/j.1467-9957.2011.02251.x).
Abstract
A large literature has studied the effects of PAYG systems on fertility, human capital and growth. We argue that the social security system may also interact with longevity when the latter is endogenously determined. We show that in such an environment, in a dynamically efficient economy PAYG pensions must be sufficiently low in order to ensure positive economic growth. Moreover, a transition to a funded social security system will promote growth, and can thereby take place by fully compensating the losers.
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e-pub ahead of print date: 12 July 2011
Keywords:
pensions, human capital, growth
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Local EPrints ID: 173917
URI: http://eprints.soton.ac.uk/id/eprint/173917
ISSN: 1463-6786
PURE UUID: d8f59448-1f6c-449d-87fe-80e0ef488537
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Date deposited: 10 Feb 2011 09:27
Last modified: 14 Mar 2024 02:32
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Author:
Giam Pietro Cipriani
Author:
Miltiadis Makris
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