Is There a Political Support for the Double Burden on Prolonged Activity?
In many countries elderly workers are subject to a double distortion when they consider prolonging their activity: the payroll tax and a reduction in their pension rights. It is often argued that such a double burden would not be socially desirable. We consider a setting where it would be rejected by both a utilitarian and a Rawlsian social planner. Furthermore, each individual would also reject it as a citizen candidate. We show that the double burden may nevertheless be (second-best) Pareto efficient and can be supported by a particular structure of social weights biased towards the more productive workers.
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- J. Ignacio Conde-Ruiz & Vincenzo Galasso, .
"The Macroeconomic of Early Retirement,"
194, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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Economics Working Papers
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- Coughlin, Peter & Nitzan, Shmuel, 1981. "Electoral outcomes with probabilistic voting and Nash social welfare maxima," Journal of Public Economics, Elsevier, vol. 15(1), pages 113-121, February.
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