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Life expectancy, heavy work and the return to education: lessons for the social security reform

  • Gilles Le Garrec

    (Observatoire français des conjonctures économiques)

  • Stéphane Lhuissier

    (Centre de recherche de la Banque de France)

In most industrial countries, while the calculation of pension bene ts is progressive, public pension systems redistribute weakly from high to low- income earners. They are close to actuarial fairness. This statement results from the following speci city: less paid jobs are also heavier and health- damaging jobs involving losses in life expectancy. As avoiding low earnings and hard-working conditions require acquisition of skills, we study conjointly in this article the impact of social security and the work-related life expectancy loss on the schooling decision. We then study macroeconomic and distributional consequences of global gain in life expectancy associated with di¤erent social security reforms, focusing particularly on spillover e¤ects possibly generated by education.

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Paper provided by Sciences Po in its series Sciences Po publications with number 2011-18.

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Date of creation: Oct 2011
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Handle: RePEc:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09hi6860cc6
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