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Social Security, Education, Retirement and Growth

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Author Info
Amaia Iza () (The University of the Basque Country)
Cruz A. Echevarría () (The University of the Basque Country)

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Abstract

n this paper we analyze the effects of social security policies in an unfunded, earnings-related social security system on the incentives to education investment and voluntary retirement, on growth and on income inequality. Growth is endogenously driven by human capital investment, individuals differ in their innate (learning) ability at birth, and the pension scheme includes a minimum pension. More skilled individuals spend more on education, minimum pensions reduce low skill individuals' incentives to invest in human capital, there is no monotonic relationship between per capita growth and income inequality.

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File URL: http://www.dfaeii.ehu.es/s0044-con/en/contenidos/informacion/00044_documentos/en_00044_dc/adjuntos/wp2008-01.pdf
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Publisher Info
Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 200801.

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Date of creation: 11 Mar 2008
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Handle: RePEc:ehu:dfaeii:200801

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Postal: Dpto. de Fundamentos del Análisis Económico II, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: Social Security; Pay-as-you-go; Voluntary Retirement; Human Capital; Minimum Pension;

Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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This page was last updated on 2009-11-17.

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