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Social security, public education, and growth in a representative democracy

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Author Info
Alexander Kemnitz () (University of Mannheim, Department of Economics, A5, D-68131 Mannheim, Germany)

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Abstract

This paper studies the relationship between public education and pay-as-you-go social security in a representative democracy, where the government reacts both to voting and lobbying activities of workers and pensioners. While an intergenerational conflict prevails concerning actual social security contributions, workers may prefer public education for its positive effect on later pension benefits. Population aging diminishes the relative lobbying power of pensioners, leading to a higher contribution rate, educational expansion, and higher per capita income growth.

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Publisher Info
Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 13 (2000)
Issue (Month): 3 ()
Pages: 443-462
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Handle: RePEc:spr:jopoec:v:13:y:2000:i:3:p:443-462

Note: Received: 05 April 1999/Accepted: 20 December 1999
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Related research
Keywords: Pensions · education · aging;

Other versions of this item:

Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
I28 - Health, Education, and Welfare - - Education - - - Government Policy
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

Cited by:
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  1. Alejandra Cattaneo & Stefan C. Wolter, 2007. "Are The Elderly A Threat To Educational Expenditures?," Economics of Education Working Paper Series 0003, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
    Other versions:
  2. Michael Kaganovich & Itzhak Zilcha, 2008. "Alternative Social Security Systems and Growth," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Poutvaara, Panu, 2004. "On the Political Economy of Social Security and Public Education," IZA Discussion Papers 1408, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Ueli Grob & Stefan C. Wolter, 2006. "Demographic Change and Public Education Spending a Conflict between Young and Old?," Economics of Education Working Paper Series 0008, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
    Other versions:
  5. Michael Kaganovich & Volker Meier, 2008. "Social Security Systems, Human Capital, and Growth in a Small Open Economy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  6. Groezen, B. van & Meijdam, L. & Verbon, H., 2002. "Social security reform and population ageing in a two-sector growth model," Discussion Paper 25, Tilburg University, Center for Economic Research. [Downloadable!]
  7. Jorge Soares, 2005. "A Dynamic General Equilibrium Analysis of the Political Economy of Public Education," Working Papers 05-05, University of Delaware, Department of Economics. [Downloadable!]
    Other versions:
  8. Alison Booth & Facundo Sepulveda, 2007. "Endogenous Fertility Policy And Unfunded Pensions," CAMA Working Papers 2007-06, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
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