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Political election on legal retirement age

  • Juan Lacomba
  • Francisco Lagos

    ()

We use a lifecycle model in which individuals differ by age and by wage in order to analyze a pairwise majority voting process on the legal retirement age. We consider two di ?erent retirement regimes. In the first one the retirees do not return to the labor market, regardless the new retirement age. In the second one, they have to return if this age is higher than her own age. We show that the final outcome of the voting process will crucially depend on the retirement regime as well as on the parameters of the Social Security, that is, the redistributive character of the system and the present legal retirement age.

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File URL: http://hdl.handle.net/10.1007/s00355-006-0199-7
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Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 29 (2007)
Issue (Month): 1 (July)
Pages: 1-17

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Handle: RePEc:spr:sochwe:v:29:y:2007:i:1:p:1-17
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  1. CASAMATTA, Georges & CREMER, Helmuth & PESTIEAU, Pierre, 1999. "The political economy of social security," CORE Discussion Papers 1999055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Crawford, Vincent P & Lilien, David M, 1981. "Social Security and the Retirement Decision," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 505-29, August.
  3. Juan Antonio Lacomba & Francisco Miguel Lagos, 2005. "Population Aging and Legal Retirement Age," ThE Papers 05/16, Department of Economic Theory and Economic History of the University of Granada..
  4. Galasso, Vincenzo & Profeta, Paola, 2002. "The political economy of social security: a survey," European Journal of Political Economy, Elsevier, vol. 18(1), pages 1-29, March.
  5. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
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