Title

Social security and intergenerational redistribution

Campus Units

Economics

Document Type

Book Chapter

Publication Version

Submitted Manuscript

Publication Date

2006

Journal or Book Title

Structural Models of Wage and Employment Dynamics

Volume

275

Issue

9

First Page or Article ID Number

183

Last Page

213

Abstract

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.

JEL Classification

J41, J64, E24

Comments

This book chapter is published as Joydeep Bhattacharya, , Robert R. Reed, (2006), Social Security and Intergenerational Redistribution, in Henning Bunzel, Bent Christensen, George R. Neumann, Jean-Marc Robin(ed.) Structural Models of Wage and Employment Dynamics (Contributions to Economic Analysis, Volume 275) Emerald Group Publishing Limited, pp.183 - 213. Posted with permission.

Rights

'This article is © Emerald Group Publishing and permission has been granted for this version to appear here (https://www.emeraldinsight.com/doi/abs/10.1016/S0573-8555%2805%2975022-4 ). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

Copyright Owner

Emerald Group Publishing Limited

Language

en

File Format

application/pdf

Published Version Working Paper

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