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Life expectancy, heavy work and return to education ; lessons for the social security reform

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In most industrial countries, while the calculation of pension bene?ts is progressive, public pension systems redistribute weakly from high to low- income earners. They are close to actuarial fairness. This statement results from the following speci?city: less paid jobs are also heavier and health- damaging jobs involving losses in life expectancy. As avoiding low earnings and hard-working conditions require acquisition of skills, we study conjointly in this article the impact of social security and the work-related life ex- pectancy loss on the schooling decision. We then study macroeconomic and distributional consequences of global gain in life expectancy associated with di¤erent social security reforms, focusing particularly on spillover e¤ects pos- sibly generated by education.

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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2011-18.

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Date of creation: Oct 2011
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Handle: RePEc:fce:doctra:1118

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Keywords: social security; human capital; inequality;

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