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A note on social security, human capital and growth

Author

Listed:
  • Joachim Thøgersen

    (Oslo Metropolitan University)

Abstract

In this paper we study the effect of an old-age public pension scheme, when growth is triggered by human capital accumulation. In Zhang (1995) and Kemnitz and Wigger (2000), it is shown that introducing an unfunded pension system in a Laissez-Faire economy will increase economic growth. The present paper follows Kemnitz and Wigger, but shows that a properly designed public funded system will also generate higher economic growth than a Laissez-Faire economy. Moreover, it is shown how capital intensity is affected by the funded pension scheme.

Suggested Citation

  • Joachim Thøgersen, 2019. "A note on social security, human capital and growth," Economics Bulletin, AccessEcon, vol. 39(4), pages 2921-2930.
    • Handle: RePEc:ebl:ecbull:eb-19-00220
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P271.pdf
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    References listed on IDEAS

    as
    1. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151.
    2. Joydeep Bhattacharya & Mark G. Guzman & Elisabeth Huybens & Bruce D. Smith, 1995. "Monetary, Fiscal, and Bank Regulatory Policy in a Simple Monetary Growth Model," Working Papers 9501, Centro de Investigacion Economica, ITAM.
    3. Bhattacharya, Joydeep, et al, 1997. "Monetary, Fiscal, and Reserve Requirement Policy in a Simple Monetary Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 321-350, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Human and physical capital accumulation; public pensions; overlapping generations; endogenous growth;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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