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Title:Assessing welfare accounts PDF Logo
Authors:Fölster, Stefan
Gidehag, Robert
Orszag, Jonathan Michael
Snower, Dennis J.
Issue Date:2002
Series/Report no.:IZA Discussion paper series 533
Abstract:The paper examines the possible effects of introducing a large-scale welfare reform in Sweden, namely, the introduction of comprehensive welfare accounts. Under this policy, individuals make mandatory contributions to accounts, which they can top up with voluntary contributions. In return, individuals? welfare benefits are paid from their accounts. The paper uses a large panel of individual income data to examine how the adoption of universal welfare accounts may affect economic activity. We find that this policy could be designed so as to reduce social insurance expenditure considerably, improve the incentives to work and save, all with relatively small redistributive impact.
Subjects:welfare reform , welfare accounts , social insurance , taxes , welfare state benefits
welfare accounts
social insurance
taxes
welfare state benefits
welfare accounts
social insurance
taxes
welfare state benefits
JEL:H51
H52
H53
H55
H11
H21
H23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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