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Social Security, Unemployment, and Growth

Michael Bräuninger ()

International Tax and Public Finance, 2005, vol. 12, issue 4, 423-434

Abstract: The paper develops an overlapping generations model that highlights interactions between social security, unemployment and growth. The social security system has two components: old age pensions and unemployment insurance. Pensions have a direct effect on economic growth. Both pensions and unemployment benefits influence equilibrium unemployment caused by wage bargaining. Since unemployment deteriorates growth, both types of social security have an indirect negative effect on growth. Copyright Springer Science + Business Media, Inc. 2005

Keywords: unemployment benefits; pensions; wage bargaining; endogenous growth (search for similar items in EconPapers)
Date: 2005
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Working Paper: Social Security, Unemployment, and Growth (2004) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:12:y:2005:i:4:p:423-434

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DOI: 10.1007/s10797-005-1823-7

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