Endogenous versus exogenous efficiency units of labour for the quantitative study of social security: two examples

Carmen Alvarez-Albelo

Applied Economics Letters, 2004, vol. 11, issue 11, 693-697

Abstract: This paper explores the role of endogenous versus exogenous efficiency units of labour for the quantitative evaluation of the impact of pay-as-you-go Social Security on labour supply. Pension response to a population growth rate change is also studied. Two dynamic general equilibrium models are used: one with human capital accumulation through learning-by-doing, and a second with exogenous efficiency units of labour. The main differences in the results are the following: (a) the shift in the working time-age profile induced by the elimination of Social Security considerably differs in both models. The increase in average hours worked is 4% higher under human capital accumulation than in the alternative model; and (b) the pension falls by a similar percentage in both models when the population growth rate is set to zero. This occurs because the capital-labour ratio changes less under learning-by-doing than with exogenous efficiency units of labour.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:taf:apeclt:v:11:y:2004:i:11:p:693-697

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/1350485042000236548

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().