A quantitative investigation of the Laffer curve on the continued work tax : the French case
AbstractIt is often argued that the tax on continued work should be removed by implementing actuarially fair schemes. However, these schemes cannot help finance the expected Social Security deficit. This paper proposes to give individuals on a fraction of the marginal actuarially fair incentives in case of postponed retirement. Social Security then faces a trade off between giving enough incentives to make individuals actually delay retirement and giving little increase in pensions in order to help finance its expected deficit. This trade-off is captured by a Laffer curve that we quantify on French data. Furthermore, we analyze the interactions between wealth and retirement behavior.
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Bibliographic InfoPaper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 0409.
Length: 35 pages
Date of creation: 2004
Date of revision:
Other versions of this item:
- Hairault, Jean-Olivier & Langot, François & Sopraseuth, Thepthida, 2005. "A Quantitative Investigation of the Laffer Curve on the Continued Work Tax: The French Case," IZA Discussion Papers 1499, 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
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-01-09 (All new papers)
- NEP-DGE-2005-01-09 (Dynamic General Equilibrium)
- NEP-PBE-2005-01-09 (Public Economics)
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