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Title:Social security incentives, human capital investment and mobility of labor PDF Logo
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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