Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33205
Authors: 
Poutvaara, Panu
Year of Publication: 
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

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