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.
(This abstract was borrowed from another version of this item.)
|Date of creation:||Nov 2004|
|Publication status:||Published in Economics of Governance, vol. 7, n°2, mai 2006, p. 133-142.|
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