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The political economy of social security under differential longevity and voluntary retirement

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Leroux, Marie-Louise [UCL]

This paper studies a model where the existence of a pension system is decided by majority voting. We assume that individuals have the same income but different longevity. Retirement is voluntary and the pension system is characterised by a payroll tax on earnings and a flat pension benefit. Individuals vote only on the tax level. We show that a pension system emerges when there is a majority of long-lived individuals and that voluntary retirement enables to lower the size of the transfers received by the long-lived. A rise in average longevity will also increase the size of the pension system.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès interdit
Publication date 2010
Language Anglais
Journal information "Journal of Public Economic Theory" - Vol. 12, no. 1, p. 151-170 (Janvier 2010)
Peer reviewed yes
Publisher Wiley
issn 1467-9779
Publication status Publié
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
UCL - SSH/IMAQ - Institut multidisciplinaire pour la modélisation et l'analyse quantitative
Links
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Bibliographic reference Leroux, Marie-Louise. The political economy of social security under differential longevity and voluntary retirement. In: Journal of Public Economic Theory, Vol. 12, no. 1, p. 151-170 (Janvier 2010)
Permanent URL http://hdl.handle.net/2078.1/33463