Economics at your fingertips  

Harsh occupations, life expectancy and social security

Pierre Pestieau () and Maria Racionero ()

Economic Modelling, 2016, vol. 58, issue C, 194-202

Abstract: Should pension provisions differ by occupation? We study the optimality of allowing the pension policies to differ by occupation when individuals differ in longevity and occupation, longevity is private information but occupation is observable. There is a case for differentiating the pension policy by occupation when longevity is (imperfectly) correlated with occupation. The short-lived workers in the safe occupation are however made worse-off, more so when the social objective includes a higher social weight on short-lived individuals to redress the implicit bias towards long-lived that the unweighted utilitarian objective entails. The maximin criterion ensures equal utility for short-lived workers regardless of occupation but those in the safe occupation consume the most when young, the least when old and retire the earliest. This is achieved by taxing – often quite heavily – their savings and their earnings from prolonged activity.

Keywords: Longevity; Retirement; Harsh occupations; Tagging (search for similar items in EconPapers)
JEL-codes: H21 H55 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Harsh Occupations, Life expectancy and Social Security (2016)
Working Paper: Harsh occupations, life expectancy and social security (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-01
Handle: RePEc:eee:ecmode:v:58:y:2016:i:c:p:194-202