A quantitative investigation of the Laffer curve on the continued work tax: the French case

Thepthida Sopraseuth (), Jean-Olivier Hairault () and Francois Langot ()

CEPREMAP Working Papers (Couverture Orange) from CEPREMAP

Abstract: It is often argued that the tax on continued work should be removed by implementing actuarially fair schemes. However, these schemes cannot help finance the expected Social Security deficit. This paper proposes to give individuals on a fraction of the marginal actuarially fair incentives in case of postponed retirement. Social Security then faces a trade off between giving enough incentives to make individuals actually delay retirement and giving little increase in pensions in order to help finance its expected deficit. This trade-off is captured by a Laffer curve that we quantify on French data. Furthermore, we analyze the interactions between wealth and retirement behavior.

JEL-codes: H31 H55 J26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-pbe
Date: 2004
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Related works:
Working Paper: A Quantitative Investigation of the Laffer Curve on the Continued Work Tax: The French Case (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:cpm:cepmap:0409

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