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The double dividend of postponing retirement

Author

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  • CREMER, Helmuth
  • PESTIEAU, Pierre

Abstract

Early retirement seems to plague social security systems in a number of European countries. In this paper we argue that delaying retirement may have two positive effects: it is likely to partially restore the financial balance of the system, and it may foster redistribution among retirees. To obtain such a double dividend, the benefit rule of the initial social security scheme must have the following two characteristics. First, it operates redistribution within generations. Second, it is "biased" and induces early retirement. Copyright 2003 by Kluwer Academic Publishers
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Suggested Citation

  • CREMER, Helmuth & PESTIEAU, Pierre, 2003. "The double dividend of postponing retirement," LIDAM Reprints CORE 1696, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:1696
    DOI: 10.1023/A:1024671130647
    Note: In : International Tax and Public Finance, 10, 419-434, 2003.
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