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Social security and economic integration

Author

Listed:
  • Artige, L.
  • Dedry, A.
  • Pestieau, P.

Abstract

This letter analyzes the impact of economic integration on capital accumulation and capital flows when countries differ in their social security systems. Funding and early retirement both foster capital accumulation relative to pay-as-you-go pensions with flexible retirement. When economies integrate, both imply capital outflow possibly resulting in utility losses.

Suggested Citation

  • Artige, L. & Dedry, A. & Pestieau, P., 2014. "Social security and economic integration," Economics Letters, Elsevier, vol. 123(3), pages 318-322.
    • Handle: RePEc:eee:ecolet:v:123:y:2014:i:3:p:318-322
    DOI: 10.1016/j.econlet.2014.02.027
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    References listed on IDEAS

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    4. Philippe Michel & Pierre Pestieau, 2002. "Optimal Taxation of Capital and Labor Income with Social Security and Variable Retirement Age," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(2), pages 163-176, May.
    5. Jonathan Gruber & Kevin Milligan & David A. Wise, 2010. "Introduction and Summary," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 1-45, National Bureau of Economic Research, Inc.
    6. Gruber, Jonathan & Wise, David, 1998. "Social Security and Retirement: An International Comparison," American Economic Review, American Economic Association, vol. 88(2), pages 158-163, May.
    7. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    8. Robert Fenge & Pierre Pestieau, 2005. "Social Security and Early Retirement," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062496, December.
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    More about this item

    Keywords

    Economic union; Pension; Retirement age; Social security;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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