IDEAS home Printed from https://ideas.repec.org/p/ecm/latm04/170.html
   My bibliography  Save this paper

Unemployment Dynamics and Social Security

Author

Listed:
  • Juan Rojas
  • Silvio Rendon

Abstract

The goal of this paper is to determine the effects of different social security regimes on job search. A less generous pension system induces higher savings across the life cycle and makes agents wealthier and thus more reluctant to accept low wage offers. On the other hand, as the social security system provides insurance against labor shocks, such as layoffs and future unemployment spells, a less generous system induces agents to accept bad job offers to save for retirement. To determine the strength of each effect, we develop a life-cycle overlapping generations model with job search, savings and a fully funded social security system. After obtaining the parameters that match the predicted moments to the observed path of employment states, wages, and assets, we compute the effects of alternative social security regimes in the U.S. economy.

Suggested Citation

  • Juan Rojas & Silvio Rendon, 2004. "Unemployment Dynamics and Social Security," Econometric Society 2004 Latin American Meetings 170, Econometric Society.
    • Handle: RePEc:ecm:latm04:170
    as

    Download full text from publisher

    File URL: http://publish.uwo.ca/~srendon/
    File Function: main text
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    Job search; social security; savings; asset accumulation liquidity constraints; retirement.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:latm04:170. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.