EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/19035
  
Title:Early retirement and social security : a long term perspective PDF Logo
Authors:Conde-Ruiz, Jose Ignacio
Galasso, Vincenzo
Profeta, Paola
Issue Date:2005
Series/Report no.:CESifo working papers 1571
Abstract:We provide a long-term perspective on the individual retirement behaviour and on the future of retirement. In a Markovian political economic theoretical framework, in which incentives to retire early are embedded, we derive a political equilibrium with positive social security contribution rates and early retirement. Aging has two opposite effects: it leads to lower taxes and fewer (early) retirees, while a poorer median voter will push for higher contributions. The model highlights the existence of crucial income effects: a decrease of the income of young people will induce them to postpone retirement and to vote for less social security.
Subjects:pensions
income effect
tax burden
politico-economic Markovian equilibrium
JEL:H55
D72
H53
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1571.pdf284.24 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/19035

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.