EconPapers    
Economics at your fingertips  
 

The Redistributive Design of Social Security Systems

J. Ignacio Conde-Ruiz () and Paola Profeta ()

No 2007-07, Working Papers from FEDEA

Abstract: Countries with low intragenerational redistribution in social security systems (Bismarckian) are associated with larger public pension expenditures, a smaller fraction of private pension and lower income inequality than countries with more redistributive social security (Beveridgean). This paper introduces a bidimensional voting model to account for these features. Agents different in age, income and in their ability to invest in the capital market vote on the degree of redistribution of the social security system and on the size of the transfer. In an economy with three income groups, a small Beveridgean system is supported by low-income agents, who gain from its redistributive feature, and high-income individuals, who seek to minimize their tax contribution and to invest in a private scheme. Middle-income individuals instead favor a large Bismarckian system.

Date: 2007-03
New Economics Papers: this item is included in nep-dge, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (92) Track citations by RSS feed

Downloads: (external link)
https://documentos.fedea.net/pubs/dt/2007/dt-2007-07.pdf (application/pdf)

Related works:
Journal Article: The Redistributive Design of Social Security Systems (2007) Downloads
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:fda:fdaddt:2007-07

Access Statistics for this paper

More papers in Working Papers from FEDEA
Bibliographic data for series maintained by Carmen Arias ().

 
Page updated 2020-11-21
Handle: RePEc:fda:fdaddt:2007-07