Marital Status and Derived Pension Rights: A Political Economy Model of Public Pensions with Borrowing Constraints

Tetsuo Ono

No 11-32, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper develops an overlapping-generation model featuring four types of households: single female, single male, one-breadwinner couple and two-breadwinner couple. The paper considers majority voting over public pension in the presence of derived pension rights for one-breadwinner couples. In an economy with a low in- tertemporal elasticity of substitution, borrowing-constrained one-breadwinner cou- ples may prefer a lower tax rate than do other types of households, although the for- mer attain a higher benefit-to-cost ratio of public pension than do others. Changes in the gender wage gap, the level of derived pension rights, and the fraction of two- breadwinner couples produce an inverse U-shaped relationship between the relevant variable and the tax rate.

Keywords: Borrowing constraint; Marital status; Gender wage gap; Derived pen- sion rights; Political economy (search for similar items in EconPapers)
JEL-codes: D72 H55 J12 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2011-11
New Economics Papers: this item is included in nep-age, nep-dge and nep-pol
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Related works:
Journal Article: Marital Status and Derived Pension Rights: A Political Economy Model of Public Pensions with Borrowing Constraints (2016)
Working Paper: Marital Status and Derived Pension Rights: A Political Economy Model of Public Pensions with Borrowing Constraints (2013)
Working Paper: Marital Status and Derived Pension Rights: A Political Economy Model of Public Pensions with Borrowing Constraints (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1132

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