Is there a Social Security Tax Wedge?
AbstractA Beveridgean pension scheme invariably reduces the marginal return to labour, and will thus discourage labour. A Bismarckian scheme can do so only if it is not actuarially fair, or in the presence of credit rationing. In any case, the same pension contribution will discourage labour less if the scheme is Bismarckian than if it is Beveridgean. A Bismarckian scheme may even encourage labour.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1772.
Date of creation: 2006
Date of revision:
tax wedge; labour; public pensions; Bismarck; Beveridge; implicit pension tax;
Other versions of this item:
- Alessandro Cigno, 2006. "Is there a social security tax wedge?," CHILD Working Papers wp04_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Cigno, Alessandro, 2006. "Is There a Social Security Tax Wedge?," IZA Discussion Papers 1967, Institute for the Study of Labor (IZA).
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-07 (All new papers)
- NEP-LAB-2006-10-07 (Labour Economics)
- NEP-PBE-2006-10-07 (Public Economics)
- NEP-PUB-2006-10-07 (Public Finance)
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