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Capital-skill Complementarity and the Redistributive Effects of Social Security Reform

Alessandra Casarico () and Carlo Devillanova

No 1038, CESifo Working Paper Series from CESifo

Abstract: This paper analyses the general equilibrium implications of reforming pay-as-you-go pension systems in an economy with heterogeneous agents, human capital investment and capital-skill complementarity. It shows that increasing funding delivers in the long run higher physical and human capital and therefore higher output, but also higher wage and income inequality. The latter affects preferences over the degree of redistribution of e remaining pay-as-you-go component: despite the greater role that edistribution could perform in the new steady state, we find a preference for lower redistribution for a larger group of the population.

Keywords: capital-skill complementarity; inter and intragenerational redistribution; pay-as-you-go; fully funded (search for similar items in EconPapers)
Date: 2003
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Related works:
Journal Article: Capital-skill complementarity and the redistributive effects of Social Security Reform (2008) Downloads
Working Paper: Capital-Skill Complementarity and the Redistributive Effects of Social Security Reform (2003) Downloads
Working Paper: Capital-skill Complementarity and the Redistributive Effects of Social Security Reform (2003) Downloads
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