Social Security, Education, Retirement and Growth

María Amaya Iza Padilla and Cruz Ángel Echevarría Olave

No 1988-088X, DFAEII Working Papers from University of the Basque Country - Department of Foundations of Economic Analysis II

Abstract: In this paper we analyze the effects of social security policies in an unfunded, earnings-related social security system on the incentives to education investment and voluntary retirement, on growth and on income inequality. Growth is endogenously driven by human capital investment, individuals differ in their innate (learning) ability at birth, and the pension scheme includes a minimum pension. More skilled individuals spend more on education, minimum pensions reduce low skill individuals' incentives to invest in human capital, there is no monotonic relationship between per capita growth and income inequality.

Keywords: social security; pay-as-you-go; voluntary retirement; human capital; minimum and maximum pension (search for similar items in EconPapers)
Date: 2008-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://addi.ehu.eus/handle/10810/6701 (application/pdf)

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:ehu:dfaeii:6701

Ordering information: This working paper can be ordered from
Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

Access Statistics for this paper

More papers in DFAEII Working Papers from University of the Basque Country - Department of Foundations of Economic Analysis II Contact information at EDIRC.
Bibliographic data for series maintained by Alcira Macías Redondo ().