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

Author

Listed:
  • Alexander Kemnitz

    (University of Mannheim, Department of Economics, A5, D-68131 Mannheim, Germany)

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.

Suggested Citation

  • Alexander Kemnitz, 2000. "Social security, public education, and growth in a representative democracy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(3), pages 443-462.
    • 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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    More about this item

    Keywords

    Pensions · education · aging;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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