Social security benefit rules, growth and inequality

Docquier, Frédéric;Paddison, Oliver
(2003) Journal of Macroeconomics — Vol. 25, n° 1, p. 47-71 (2003)

Files

pdfdocument.pdf
  • Restricted Access
  • Adobe PDF
  • 305.86 KB
Request a copy

Details

Authors
  • Docquier, FrédéricUniversité of Lille 2 - CADRE et Ministère de la région Wallone - SES
    Author
  • Paddison, OliverUniversity of Liège - CREPP
    Author
Abstract
We examine the balanced growth effects of pension plans on the rate of growth and on income dispersion in a closed economy where individual decisions about education are the engine of growth. We distinguish between pay-as-you-go and fully funded pension systems and differentiate between three different benefit rules: a Beveridgean regime, a Bismarckian regime depending on one's entire earnings history and on one's partial earnings history. Our analysis shows that social security generally reduces the long-run growth rate and our inequality measure. Growth can only be stimulated under a fully funded scheme based on partial earnings history. (C) 2003 Elsevier Science Inc. All rights reserved.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Docquier, F., & Paddison, O. (2003). Social security benefit rules, growth and inequality. Journal of Macroeconomics, 25(1), 47-71. https://doi.org/10.1016/S0164-0704(03)00006-5 (Original work published 2003)