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IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
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http://hdl.handle.net/10419/33205
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| Title: | | Social security incentives, human capital investment and mobility of labor  |
| Authors: | | Poutvaara, Panu |
| Issue Date: | | 2005 |
| Series/Report no.: | | IZA Discussion Papers 1729 |
| Abstract: | | Migration between countries with earnings-related and flat-rate pay-as-you-go social security systems may change human capital investments in both countries. The possibility of emigration boosts investments in human capital in the country with flat-rate benefits. Correspondingly, those expecting to migrate from the country with earnings-related benefits to a country with flat-rate benefits may reduce their investment in education. With suitably planned transfers between the two countries, allowing for migration may generate a Pareto-improvement for all current and future generations. Without transfers, either country may be unable to pay for promised benefits when labor becomes mobile. |
| Subjects: | | social security education migration earnings-related and flat-rate pensions |
| JEL: | | H55 I2 F22 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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