Demographic structure and growth: The effect of unfunded social security

2008 ◽  
Vol 100 (2) ◽  
pp. 288-291 ◽  
Author(s):  
Hiroyuki Ito ◽  
Ken Tabata
Keyword(s):  
Social Security ◽  
Demographic Structure ◽  
Unfunded Social Security

scholarly journals Kapitaldeckungs- versus Umlageverfahren

2000 ◽  
Vol 1 (4) ◽  
pp. 383-405 ◽  
Author(s):  
Friedrich Breyer
Keyword(s):  
Social Security ◽  
Old Age ◽  
Social Security Systems ◽  
Financing System ◽  
Security Systems ◽  
Rates Of Return ◽  
Radical Reform ◽  
Funded Pensions ◽  
Unfunded Social Security ◽  
Academic Debate

Abstract In the academic debate on systems of old-age insurance no question is as controversial and as vigorously discussed as the choice between funded and unfunded financing modes. At first glance this is surprising because this choice seems to involve only an efficiency problem. However, closer inspection reveals that a change of the financing system implies redistribution, if not within, at least among, different generations. In this contribution, the present state of knowledge on the functioning and the effects of the two financing systems is summarized. The analysis focuses on a comparison of rates of return and risks involved in each system and on the problems connected with a transition from unfunded to funded pensions. As a result it is argued that without reference to specific criteria of distributive equity among generations the nowadays popular call for radical reform of unfunded social security systems is not well founded.

scholarly journals Kobieta kryzysem brzemienna. Sytuacja kobiet na i poza rynkiem pracy w dobie kryzysu demograficznego.

2018 ◽  
pp. 265-279
Author(s):  
Margareta Wysocka
Keyword(s):  
European Union ◽  
Social Security ◽  
Labour Market ◽  
Basic Income ◽  
Demographic Structure ◽  
Ageing Society ◽  
Starting Point ◽  
European Union Countries ◽  
Public Debates ◽  
Economic Considerations

The article refers to the problem of demographic crisis, a frequent topic of public debates in European Union countries, which struggle with the phenomenon of ageing society. The main goal of the research part is analyze selected factors connected with the demographic stagnation (regression), that have an impact on mothers’ activity (or lack of activity) on the labour market. The article is a starting point for the analysis of guaranteed basic income for women working as housewives (those who claim: ‘I want to have children’ but, as a result of economic considerations intertwined with the problem of social security, later state ‘I have to work’), as potential social policy’s instrument which can be applied for the purpose of changing the unfavorable demographic structure.

scholarly journals Longer Life and Higher Fertility in an OLG Economy with Production

2013 ◽  
Vol 2013 ◽  
pp. 1-7
Author(s):  
Luciano Fanti
Keyword(s):  
Life Expectancy ◽  
Social Security ◽  
Developed Countries ◽  
Relative Strength ◽  
Fertility Rate ◽  
Security System ◽  
Goods And Services ◽  
Long Run ◽  
Unfunded Social Security ◽  
The Cost

This paper investigates the effect of a change in life expectancy (i.e., longevity) on fertility in a standard OLG economy. The main result is that, in contrast with other papers, an increase in the longevity rate may increase the fertility rate as well. It is shown that such a result holds when the cost of rearing children in terms of goods and services (rather than in terms of forgone wages) matters. In particular, such a result depends on the relative “strength” of the capital in the technology as compared with the “strength” of the parsimony. Moreover it is shown, again in contrast with other papers, that with an unfunded social security system it is more likely that a longer life may increase the fertility. The latter result is even more likely in the presence of child subsidy policies, which are widespread in developed countries. In conclusion, we argue that in countries having a population with a high longevity, a high capital share, a large unfunded social security, and child subsidy policies (such as Italy), a further increase of longevity may increase fertility in the long run and thus partially alleviate the peril of the so-called “demographic bomb.”

scholarly journals Incentives to retire later – a solution to the social security crisis?

2002 ◽  
Vol 1 (2) ◽  
pp. 111-130 ◽  
Author(s):  
FRIEDRICH BREYER ◽  
MATHIAS KIFMANN
Keyword(s):  
Social Security ◽  
Pension System ◽  
Retirement Age ◽  
Negative Effects ◽  
Social Security Systems ◽  
Security Systems ◽  
Long Run ◽  
The Social ◽  
Unfunded Social Security ◽  
Increasing Function

As one possible solution to the well-known financing crisis of unfunded social security systems, an increase in the retirement age is a popular option. To induce workers to retire later, it has been proposed to strengthen the link between retirement age and benefit level. The present paper is devoted to analyzing the long-run financial implications of such a reform. We show that with actuarial adjustments the long-run contribution rate is an increasing function of the retirement age chosen by workers. Moreover, the implicit tax paid to the pension system by a participant can increase in the long run if the retirement age rises in response to a ‘steep’ adjustment rule. In this sense, the proposed ‘cure’ may worsen the disease. Finally, we show how the negative effects can be avoided by forming a capital stock from the additional revenues due to later retirement.

scholarly journals Like Father, Like Son: Inheriting and Bequeathing

2019 ◽  
Vol 20 (2) ◽  
pp. 194-216
Author(s):  
Carlos Bethencourt ◽  
Lars Kunze
Keyword(s):  
Social Security ◽  
Ricardian Equivalence ◽  
Olg Model ◽  
Behavioral Interactions ◽  
Long Run ◽  
Per Capita ◽  
Unfunded Social Security ◽  
The Relationship ◽  
Shaped Pattern ◽  
Special Case

Abstract This paper incorporates indirect reciprocal behavior in the context of bequeathing decisions into an otherwise standard OLG model. We provide conditions for the existence of a unique steady state with operative bequests. Contrary to standard OLG models, we show that taking into account such behavioral interactions allows one to rationalize both an increasing and U-shaped pattern of the inheritance to GDP ratio over time, consistent with recent empirical evidence. Moreover, the model predicts a nonlinear (U-shaped) relationship between the size of an unfunded social security program and the long-run stock of per capita capital, which in turn provides a novel explanation of the inconclusive empirical findings on the relationship between social security, savings and long-run growth. Ricardian equivalence is shown to hold in a special case of the model.

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