Social Security And Early Retirement In An Overlapping-Generations Growth Model

Philippe Michel and Pierre Pestieau

Annals of Economics and Finance, 2013, vol. 14, issue 2, 723-737

Abstract: This paper explains why workers retire earlier, and earlier at the same time as society becomes more and more indebted through increasing pay-as-you-go pension liabilities. To do so, we extend the standard twooverlapping-generations growth model to allow for endogenous labor participation in the later period of life. We show that the rate of participation declines as the size of social security system increases. We also show that mandatory early retirement many be socially desirable in case of underaccumulation.

Date: 2013
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Related works:
Working Paper: Social security and early retirement in an overlapping-generations growth model (2013)
Working Paper: Social security and early retirement in an overlapping-generations growth model (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2013:v:14:i:3:michel:pestieau

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