Social Security and Intergenerational Redistribution
Many countries around the world have large public pension programs with significant cross-cohort redistribution. This paper provides a rationale for such programs in a lifecycle framework with search and matching frictions in the labor market. In the model, public pension programs alter the age composition of the labor force by inducing the jobless elderly to retire. This improves the allocation of workers to jobs, raises firm entry and may also improve welfare. By requiring a long history of labor market attachment as a precondition to receiving benefits, these programs raise the future value of current employment for the young. This redistributes bargaining strength and income from the young to the old.
|Date of creation:||01 Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael D. Hurd, 1993. "The Effect of Labor Market Rigidities on the Labor Force Behavior of Older Workers," NBER Working Papers 4462, National Bureau of Economic Research, Inc.
- Gottschalk, Peter & Moffitt, Robert, 1999. "Changes in Job Instability and Insecurity Using Monthly Survey Data," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S91-126, October.
- Robert Shimer, 2001.
"The Impact of Young Workers on the Aggregate Labor Market,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 116(3), pages 969-1007.
- Robert Shimer, 1999. "The Impact of Young Workers on the Aggregate Labor Market," NBER Working Papers 7306, National Bureau of Economic Research, Inc.
- Christopher J. O'Leary & Stephen A. Wandner, 2001.
"Unemployment Compensation and Older Workers,"
Book chapters authored by Upjohn Institute researchers,
W.E. Upjohn Institute for Employment Research.
- Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992.
"Earnings losses of displaced workers,"
Working Paper Series, Macroeconomic Issues
92-28, Federal Reserve Bank of Chicago.
- Peter Diamond & Jonathan Gruber, 1997. "Social Security and Retirement in the U.S," NBER Working Papers 6097, National Bureau of Economic Research, Inc.
- Bhattacharya, Joydeep & Mulligan, Casey & Reed, Robert, 2003.
"Labor Market Search and Optimal Retirement Policy,"
Staff General Research Papers
10251, Iowa State University, Department of Economics.
- Carl Davidson & Lawrence Martin & Steven Matusz, 1994. "Jobs and Chocolate: Samuelsonian Surpluses in Dynamic Models of Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(1), pages 173-192.
- Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
- Pissarides, Christopher A, 1976. "Job Search and Participation," Economica, London School of Economics and Political Science, vol. 43(169), pages 33-49, February.
- Peter Diamond, 2004. "Social Security," American Economic Review, American Economic Association, vol. 94(1), pages 1-24, March.
- Michele Boldrin & Sergi Jimenez-Martin & Franco Peracchi, 1999.
"Social Security and Retirement in Spain,"
in: Social Security and Retirement around the World, pages 305-353
National Bureau of Economic Research, Inc.
- Peracchi, Franco & Jiménez-Martín, Sergi & Boldrin, Michele, 1997. "Social security and retirement in Spain," UC3M Working papers. Economics 6043, Universidad Carlos III de Madrid. Departamento de Economía.
- Michele Boldrin & Sergi Jimenez-Martni & Franco Peracchi, 1997. "Social Security and Retirement in Spain," NBER Working Papers 6136, National Bureau of Economic Research, Inc.
- Sewin Chan & Ann Huff Stevens, 2002.
"How Does Job Loss Affect the Timing of Retirement?,"
NBER Working Papers
8780, National Bureau of Economic Research, Inc.
- Chan Sewin & Stevens Ann H, 2004. "How Does Job Loss Affect the Timing of Retirement?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-26, May.
- Sala-i-Martin, Xavier X, 1996.
"A Positive Theory of Social Security,"
Journal of Economic Growth,
Springer, vol. 1(2), pages 2a77-304, June.
- Black, Dan A, 1987. "The Social Security System, the Provision of Human Capital, and the Structure of Compensation," Journal of Labor Economics, University of Chicago Press, vol. 5(2), pages 242-54, April.
- Mulligan Casey B & Sala-i-Martin Xavier, 2004. "Political and Economic Forces Sustaining Social Security," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-56, May.
- Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1.
- Michele Boldrin & Aldo Rustichini, 2000. "Political Equilibria with Social Security," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(1), pages 41-78, January.
- Hutchens, Robert, 1986. "Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 439-57, October.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:12661. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)
If references are entirely missing, you can add them using this form.