Social Security Incentives and Human Capital Investment

Morten Lau and Panu Poutvaara

Finnish Economic Papers, 2006, vol. 19, issue 1, 16-24

Abstract: While the effect of social security systems on retirement decisions has received much attention, there are no analytical results on the impact of these systems on individual incentives to invest in human capital. We integrate human capital investment and retirement decisions in an analytical life-cycle model with full certainty and investigate how different social security schemes may affect human capital investment and labor supply. We analyze and compare three different social security systems, differing on whether benefits are conditional on withdrawal from the labor market and on previous income.

JEL-codes: H55 I21 J26 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Social Security Incentives and Human Capital Investment (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:19:y:2006:i:1:p:16-24

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